Correlation Between Seeing Machines and FC Investment
Can any of the company-specific risk be diversified away by investing in both Seeing Machines and FC Investment 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 Seeing Machines and FC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seeing Machines Limited and FC Investment Trust, you can compare the effects of market volatilities on Seeing Machines and FC Investment 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 Seeing Machines with a short position of FC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seeing Machines and FC Investment.
Diversification Opportunities for Seeing Machines and FC Investment
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Seeing and FCIT is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Seeing Machines Limited and FC Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FC Investment Trust and Seeing Machines 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 Seeing Machines Limited are associated (or correlated) with FC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FC Investment Trust has no effect on the direction of Seeing Machines i.e., Seeing Machines and FC Investment go up and down completely randomly.
Pair Corralation between Seeing Machines and FC Investment
Assuming the 90 days trading horizon Seeing Machines Limited is expected to under-perform the FC Investment. In addition to that, Seeing Machines is 2.82 times more volatile than FC Investment Trust. It trades about -0.06 of its total potential returns per unit of risk. FC Investment Trust is currently generating about 0.11 per unit of volatility. If you would invest 85,943 in FC Investment Trust on September 3, 2024 and sell it today you would earn a total of 27,257 from holding FC Investment Trust or generate 31.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seeing Machines Limited vs. FC Investment Trust
Performance |
| Timeline |
| Seeing Machines |
| FC Investment Trust |
Seeing Machines and FC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seeing Machines and FC Investment
The main advantage of trading using opposite Seeing Machines and FC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seeing Machines position performs unexpectedly, FC Investment 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 FC Investment will offset losses from the drop in FC Investment's long position.| Seeing Machines vs. Samsung Electronics Co | Seeing Machines vs. Samsung Electronics Co | Seeing Machines vs. Hyundai Motor | Seeing Machines vs. Toyota Motor Corp |
| FC Investment vs. SupplyMe Capital PLC | FC Investment vs. 88 Energy | FC Investment vs. Vodafone Group PLC | FC Investment vs. Vodafone Group PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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