Correlation Between FANDIFI TECHNOLOGY and IMPERIAL TOBACCO
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and IMPERIAL TOBACCO 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 IMPERIAL TOBACCO 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 IMPERIAL TOBACCO , you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and IMPERIAL TOBACCO 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 IMPERIAL TOBACCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and IMPERIAL TOBACCO.
Diversification Opportunities for FANDIFI TECHNOLOGY and IMPERIAL TOBACCO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and IMPERIAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and IMPERIAL TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMPERIAL TOBACCO 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 IMPERIAL TOBACCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMPERIAL TOBACCO has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and IMPERIAL TOBACCO go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and IMPERIAL TOBACCO
If you would invest 2,494 in IMPERIAL TOBACCO on September 3, 2024 and sell it today you would earn a total of 585.00 from holding IMPERIAL TOBACCO or generate 23.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. IMPERIAL TOBACCO
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| IMPERIAL TOBACCO |
FANDIFI TECHNOLOGY and IMPERIAL TOBACCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and IMPERIAL TOBACCO
The main advantage of trading using opposite FANDIFI TECHNOLOGY and IMPERIAL TOBACCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, IMPERIAL TOBACCO 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 IMPERIAL TOBACCO will offset losses from the drop in IMPERIAL TOBACCO's long position.| FANDIFI TECHNOLOGY vs. GALENA MINING LTD | FANDIFI TECHNOLOGY vs. United Natural Foods | FANDIFI TECHNOLOGY vs. TYSON FOODS A | FANDIFI TECHNOLOGY vs. GRIFFIN MINING LTD |
| IMPERIAL TOBACCO vs. Gamma Communications plc | IMPERIAL TOBACCO vs. WisdomTree Investments | IMPERIAL TOBACCO vs. Strategic Investments AS | IMPERIAL TOBACCO vs. ECHO INVESTMENT ZY |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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