Correlation Between FANDIFI TECHNOLOGY and Penta-Ocean Construction
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and Penta-Ocean Construction 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 Penta-Ocean Construction 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 Penta Ocean Construction Co, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and Penta-Ocean Construction 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 Penta-Ocean Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and Penta-Ocean Construction.
Diversification Opportunities for FANDIFI TECHNOLOGY and Penta-Ocean Construction
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and Penta-Ocean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and Penta Ocean Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penta-Ocean Construction 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 Penta-Ocean Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penta-Ocean Construction has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and Penta-Ocean Construction go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and Penta-Ocean Construction
Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to generate 15.68 times more return on investment than Penta-Ocean Construction. However, FANDIFI TECHNOLOGY is 15.68 times more volatile than Penta Ocean Construction Co. It trades about 0.04 of its potential returns per unit of risk. Penta Ocean Construction Co is currently generating about -0.01 per unit of risk. If you would invest 3.20 in FANDIFI TECHNOLOGY P on October 12, 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. Penta Ocean Construction Co
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| Penta-Ocean Construction |
FANDIFI TECHNOLOGY and Penta-Ocean Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and Penta-Ocean Construction
The main advantage of trading using opposite FANDIFI TECHNOLOGY and Penta-Ocean Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, Penta-Ocean Construction 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 Penta-Ocean Construction will offset losses from the drop in Penta-Ocean Construction's long position.| FANDIFI TECHNOLOGY vs. Eidesvik Offshore ASA | FANDIFI TECHNOLOGY vs. TIANDE CHEMICAL | FANDIFI TECHNOLOGY vs. EAGLE MATERIALS | FANDIFI TECHNOLOGY vs. Heidelberg Materials 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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