Correlation Between PEPKOR and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both PEPKOR and FUYO GENERAL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PEPKOR and FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEPKOR LTD and FUYO GENERAL LEASE, you can compare the effects of market volatilities on PEPKOR and FUYO GENERAL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PEPKOR with a short position of FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEPKOR and FUYO GENERAL.
Diversification Opportunities for PEPKOR and FUYO GENERAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PEPKOR and FUYO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PEPKOR LTD and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE and PEPKOR is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PEPKOR LTD are associated (or correlated) with FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of PEPKOR i.e., PEPKOR and FUYO GENERAL go up and down completely randomly.
Pair Corralation between PEPKOR and FUYO GENERAL
If you would invest 6,400 in FUYO GENERAL LEASE on October 24, 2024 and sell it today you would earn a total of 450.00 from holding FUYO GENERAL LEASE or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PEPKOR LTD vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| PEPKOR LTD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| FUYO GENERAL LEASE |
PEPKOR and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PEPKOR and FUYO GENERAL
The main advantage of trading using opposite PEPKOR and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEPKOR position performs unexpectedly, FUYO GENERAL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| PEPKOR vs. Eurasia Mining Plc | PEPKOR vs. De Grey Mining | PEPKOR vs. MCEWEN MINING INC | PEPKOR vs. PURE FOODS TASMANIA |
| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Avis Budget Group | FUYO GENERAL vs. Sixt SE |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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