Correlation Between FANDIFI TECHNOLOGY and InPlay Oil
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and InPlay Oil 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 InPlay Oil 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 InPlay Oil Corp, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and InPlay Oil 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 InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and InPlay Oil.
Diversification Opportunities for FANDIFI TECHNOLOGY and InPlay Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and InPlay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp 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 InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and InPlay Oil go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and InPlay Oil
If you would invest 0.05 in FANDIFI TECHNOLOGY P on August 28, 2024 and sell it today you would earn a total of 0.00 from holding FANDIFI TECHNOLOGY P or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. InPlay Oil Corp
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| InPlay Oil Corp |
FANDIFI TECHNOLOGY and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and InPlay Oil
The main advantage of trading using opposite FANDIFI TECHNOLOGY and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil's long position.| FANDIFI TECHNOLOGY vs. Nemetschek AG ON | FANDIFI TECHNOLOGY vs. Superior Plus Corp | FANDIFI TECHNOLOGY vs. NMI Holdings | FANDIFI TECHNOLOGY vs. Origin Agritech |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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