Correlation Between FANDIFI TECHNOLOGY and ENEOS Holdings
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and ENEOS Holdings 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 ENEOS Holdings 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 ENEOS Holdings, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and ENEOS Holdings 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 ENEOS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and ENEOS Holdings.
Diversification Opportunities for FANDIFI TECHNOLOGY and ENEOS Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and ENEOS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and ENEOS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENEOS Holdings 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 ENEOS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENEOS Holdings has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and ENEOS Holdings go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and ENEOS Holdings
Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to generate 7.98 times more return on investment than ENEOS Holdings. However, FANDIFI TECHNOLOGY is 7.98 times more volatile than ENEOS Holdings. It trades about 0.04 of its potential returns per unit of risk. ENEOS Holdings is currently generating about 0.05 per unit of risk. If you would invest 0.50 in FANDIFI TECHNOLOGY P on October 11, 2024 and sell it today you would lose (0.45) from holding FANDIFI TECHNOLOGY P or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.65% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. ENEOS Holdings
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| ENEOS Holdings |
FANDIFI TECHNOLOGY and ENEOS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and ENEOS Holdings
The main advantage of trading using opposite FANDIFI TECHNOLOGY and ENEOS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, ENEOS Holdings 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 ENEOS Holdings will offset losses from the drop in ENEOS Holdings' long position.| FANDIFI TECHNOLOGY vs. Salesforce | FANDIFI TECHNOLOGY vs. Rocket Internet SE | FANDIFI TECHNOLOGY vs. Superior Plus Corp | FANDIFI TECHNOLOGY vs. NMI Holdings |
| ENEOS Holdings vs. FANDIFI TECHNOLOGY P | ENEOS Holdings vs. SYSTEMAIR AB | ENEOS Holdings vs. CHINA SOUTHN AIR H | ENEOS Holdings vs. Easy Software AG |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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