Correlation Between Sofwave Medical and Feat Fund
Can any of the company-specific risk be diversified away by investing in both Sofwave Medical and Feat Fund 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 Sofwave Medical and Feat Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sofwave Medical and Feat Fund Investments, you can compare the effects of market volatilities on Sofwave Medical and Feat Fund 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 Sofwave Medical with a short position of Feat Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sofwave Medical and Feat Fund.
Diversification Opportunities for Sofwave Medical and Feat Fund
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sofwave and Feat is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sofwave Medical and Feat Fund Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feat Fund Investments and Sofwave Medical 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 Sofwave Medical are associated (or correlated) with Feat Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feat Fund Investments has no effect on the direction of Sofwave Medical i.e., Sofwave Medical and Feat Fund go up and down completely randomly.
Pair Corralation between Sofwave Medical and Feat Fund
Assuming the 90 days trading horizon Sofwave Medical is expected to under-perform the Feat Fund. In addition to that, Sofwave Medical is 1.68 times more volatile than Feat Fund Investments. It trades about 0.0 of its total potential returns per unit of risk. Feat Fund Investments is currently generating about 0.26 per unit of volatility. If you would invest 12,950 in Feat Fund Investments on October 26, 2024 and sell it today you would earn a total of 2,630 from holding Feat Fund Investments or generate 20.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sofwave Medical vs. Feat Fund Investments
Performance |
| Timeline |
| Sofwave Medical |
| Feat Fund Investments |
Sofwave Medical and Feat Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sofwave Medical and Feat Fund
The main advantage of trading using opposite Sofwave Medical and Feat Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sofwave Medical position performs unexpectedly, Feat Fund 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 Feat Fund will offset losses from the drop in Feat Fund's long position.| Sofwave Medical vs. Intercure | Sofwave Medical vs. Epitomee Medical | Sofwave Medical vs. Brainsway | Sofwave Medical vs. Bio View |
| Feat Fund vs. G Willi Food International | Feat Fund vs. Sofwave Medical | Feat Fund vs. Elbit Medical Technologies | Feat Fund vs. Automatic Bank Services |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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