Correlation Between FBINUS and Vestis
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By analyzing existing cross correlation between FBINUS 45 25 MAR 52 and Vestis, you can compare the effects of market volatilities on FBINUS and Vestis 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 FBINUS with a short position of Vestis. Check out your portfolio center. Please also check ongoing floating volatility patterns of FBINUS and Vestis.
Diversification Opportunities for FBINUS and Vestis
Weak diversification
The 3 months correlation between FBINUS and Vestis is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding FBINUS 45 25 MAR 52 and Vestis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestis and FBINUS 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 FBINUS 45 25 MAR 52 are associated (or correlated) with Vestis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestis has no effect on the direction of FBINUS i.e., FBINUS and Vestis go up and down completely randomly.
Pair Corralation between FBINUS and Vestis
Assuming the 90 days trading horizon FBINUS 45 25 MAR 52 is expected to under-perform the Vestis. But the bond apears to be less risky and, when comparing its historical volatility, FBINUS 45 25 MAR 52 is 1.76 times less risky than Vestis. The bond trades about -0.44 of its potential returns per unit of risk. The Vestis is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,435 in Vestis on August 24, 2024 and sell it today you would earn a total of 127.00 from holding Vestis or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
FBINUS 45 25 MAR 52 vs. Vestis
Performance |
| Timeline |
| FBINUS 45 25 |
| Vestis |
FBINUS and Vestis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FBINUS and Vestis
The main advantage of trading using opposite FBINUS and Vestis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FBINUS position performs unexpectedly, Vestis 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 Vestis will offset losses from the drop in Vestis' long position.| FBINUS vs. Vestis | FBINUS vs. Lincoln Educational Services | FBINUS vs. First Ship Lease | FBINUS vs. Skillful Craftsman Education |
| Vestis vs. Ryder System | Vestis vs. Air Lease | Vestis vs. Eshallgo Class A | Vestis vs. Willis Lease Finance |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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