Correlation Between Fantagio Corp and Pureun Mutual

Can any of the company-specific risk be diversified away by investing in both Fantagio Corp and Pureun Mutual 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 Fantagio Corp and Pureun Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fantagio Corp and Pureun Mutual Savings, you can compare the effects of market volatilities on Fantagio Corp and Pureun Mutual 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 Fantagio Corp with a short position of Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fantagio Corp and Pureun Mutual.

Diversification Opportunities for Fantagio Corp and Pureun Mutual

0.13

Correlation Coefficient

Fantagio Corp  Pureun Mutual

Average diversification

The 3 months correlation between Fantagio and Pureun is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fantagio Corp and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings and Fantagio Corp 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 Fantagio Corp are associated (or correlated) with Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of Fantagio Corp i.e., Fantagio Corp and Pureun Mutual go up and down completely randomly.

Pair Corralation between Fantagio Corp and Pureun Mutual

Assuming the 90 days trading horizon Fantagio Corp is expected to generate 9.72 times more return on investment than Pureun Mutual. However, Fantagio Corp is 9.72 times more volatile than Pureun Mutual Savings. It trades about 0.0 of its potential returns per unit of risk. Pureun Mutual Savings is currently generating about -0.08 per unit of risk. If you would invest  58,600  in Fantagio Corp on December 24, 2024 and sell it today you would lose (2,600) from holding Fantagio Corp or give up 4.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.28%
Values	Daily Returns

Fantagio Corp  vs.  Pureun Mutual Savings

Fantagio Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fantagio Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Fantagio Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pureun Mutual Savings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pureun Mutual Savings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Pureun Mutual is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fantagio Corp and Pureun Mutual

The main advantage of trading using opposite Fantagio Corp and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fantagio Corp position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.

The idea behind Fantagio Corp and Pureun Mutual Savings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.