Correlation Between FANDIFI TECHNOLOGY and AutoNation
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and AutoNation 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 AutoNation 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 AutoNation, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and AutoNation 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 AutoNation. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and AutoNation.
Diversification Opportunities for FANDIFI TECHNOLOGY and AutoNation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and AutoNation is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and AutoNation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoNation 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 AutoNation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoNation has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and AutoNation go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and AutoNation
If you would invest 14,420 in AutoNation on October 30, 2024 and sell it today you would earn a total of 2,940 from holding AutoNation or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. AutoNation
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| AutoNation |
FANDIFI TECHNOLOGY and AutoNation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and AutoNation
The main advantage of trading using opposite FANDIFI TECHNOLOGY and AutoNation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, AutoNation 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 AutoNation will offset losses from the drop in AutoNation's long position.| FANDIFI TECHNOLOGY vs. COFCO Joycome Foods | FANDIFI TECHNOLOGY vs. EBRO FOODS | FANDIFI TECHNOLOGY vs. PATTIES FOODS | FANDIFI TECHNOLOGY vs. alstria office REIT AG |
| AutoNation vs. GWILLI FOOD | AutoNation vs. Gruppo Mutuionline SpA | AutoNation vs. PLANT VEDA FOODS | AutoNation vs. Lamar Advertising |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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