Correlation Between FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1 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 FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and POSBO UNSPADRS20YC1, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1 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 FANDIFI TECHNOLOGY with a short position of POSBO UNSPADRS/20YC1. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1.
Diversification Opportunities for FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and POSBO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and POSBO UNSPADRS20YC1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POSBO UNSPADRS/20YC1 and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P are associated (or correlated) with POSBO UNSPADRS/20YC1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POSBO UNSPADRS/20YC1 has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1 go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1
If you would invest 1,020 in POSBO UNSPADRS20YC1 on September 1, 2024 and sell it today you would earn a total of 0.00 from holding POSBO UNSPADRS20YC1 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. POSBO UNSPADRS20YC1
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| POSBO UNSPADRS/20YC1 |
FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1
The main advantage of trading using opposite FANDIFI TECHNOLOGY and POSBO UNSPADRS/20YC1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, POSBO UNSPADRS/20YC1 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 POSBO UNSPADRS/20YC1 will offset losses from the drop in POSBO UNSPADRS/20YC1's long position.| FANDIFI TECHNOLOGY vs. SAP SE | FANDIFI TECHNOLOGY vs. Superior Plus Corp | FANDIFI TECHNOLOGY vs. NMI Holdings | FANDIFI TECHNOLOGY vs. Origin Agritech |
| POSBO UNSPADRS/20YC1 vs. Check Point Software | POSBO UNSPADRS/20YC1 vs. MAGIC SOFTWARE ENTR | POSBO UNSPADRS/20YC1 vs. FUYO GENERAL LEASE | POSBO UNSPADRS/20YC1 vs. FANDIFI TECHNOLOGY P |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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