Correlation Between FANDIFI TECHNOLOGY and Federal Agricultural
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and Federal Agricultural 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 Federal Agricultural 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 Federal Agricultural Mortgage, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and Federal Agricultural 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 Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and Federal Agricultural.
Diversification Opportunities for FANDIFI TECHNOLOGY and Federal Agricultural
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and Federal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural 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 Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and Federal Agricultural go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and Federal Agricultural
Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to generate 11.7 times more return on investment than Federal Agricultural. However, FANDIFI TECHNOLOGY is 11.7 times more volatile than Federal Agricultural Mortgage. It trades about 0.05 of its potential returns per unit of risk. Federal Agricultural Mortgage is currently generating about 0.06 per unit of risk. If you would invest 3.20 in FANDIFI TECHNOLOGY P on October 11, 2024 and sell it today you would lose (3.15) from holding FANDIFI TECHNOLOGY P or give up 98.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. Federal Agricultural Mortgage
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| Federal Agricultural |
FANDIFI TECHNOLOGY and Federal Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and Federal Agricultural
The main advantage of trading using opposite FANDIFI TECHNOLOGY and Federal Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, Federal Agricultural 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 Federal Agricultural will offset losses from the drop in Federal Agricultural's long position.| FANDIFI TECHNOLOGY vs. Salesforce | FANDIFI TECHNOLOGY vs. Rocket Internet SE | FANDIFI TECHNOLOGY vs. Superior Plus Corp | FANDIFI TECHNOLOGY vs. NMI Holdings |
| Federal Agricultural vs. China Eastern Airlines | Federal Agricultural vs. AEGEAN AIRLINES | Federal Agricultural vs. ADRIATIC METALS LS 013355 | Federal Agricultural vs. SINGAPORE AIRLINES |
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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