Correlation Between Stelar Metals and FSA
Can any of the company-specific risk be diversified away by investing in both Stelar Metals and FSA 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 Stelar Metals and FSA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stelar Metals and FSA Group, you can compare the effects of market volatilities on Stelar Metals and FSA 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 Stelar Metals with a short position of FSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stelar Metals and FSA.
Diversification Opportunities for Stelar Metals and FSA
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stelar and FSA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Stelar Metals and FSA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSA Group and Stelar Metals 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 Stelar Metals are associated (or correlated) with FSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSA Group has no effect on the direction of Stelar Metals i.e., Stelar Metals and FSA go up and down completely randomly.
Pair Corralation between Stelar Metals and FSA
Assuming the 90 days trading horizon Stelar Metals is expected to under-perform the FSA. But the stock apears to be less risky and, when comparing its historical volatility, Stelar Metals is 1.19 times less risky than FSA. The stock trades about -0.04 of its potential returns per unit of risk. The FSA Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 84.00 in FSA Group on November 27, 2024 and sell it today you would earn a total of 2.00 from holding FSA Group or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stelar Metals vs. FSA Group
Performance |
| Timeline |
| Stelar Metals |
| FSA Group |
Stelar Metals and FSA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stelar Metals and FSA
The main advantage of trading using opposite Stelar Metals and FSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stelar Metals position performs unexpectedly, FSA 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 FSA will offset losses from the drop in FSA's long position.| Stelar Metals vs. Auctus Alternative Investments | Stelar Metals vs. Australian Strategic Materials | Stelar Metals vs. Hotel Property Investments | Stelar Metals vs. Alternative Investment Trust |
| FSA vs. Ramsay Health Care | FSA vs. Oneview Healthcare PLC | FSA vs. Cleanaway Waste Management | FSA vs. Clime Investment Management |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |