Correlation Between Inspire Global and FIS Christian

Can any of the company-specific risk be diversified away by investing in both Inspire Global and FIS Christian 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 Inspire Global and FIS Christian into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Inspire Global Hope and FIS Christian Stock, you can compare the effects of market volatilities on Inspire Global and FIS Christian 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 Inspire Global with a short position of FIS Christian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspire Global and FIS Christian.

Diversification Opportunities for Inspire Global and FIS Christian

0.9

Correlation Coefficient

Inspire Global  FIS Christian

Almost no diversification

The 3 months correlation between Inspire and FIS is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Inspire Global Hope and FIS Christian Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIS Christian Stock and Inspire Global 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 Inspire Global Hope are associated (or correlated) with FIS Christian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIS Christian Stock has no effect on the direction of Inspire Global i.e., Inspire Global and FIS Christian go up and down completely randomly.

Pair Corralation between Inspire Global and FIS Christian

Given the investment horizon of 90 days Inspire Global is expected to generate 1.19 times less return on investment than FIS Christian. In addition to that, Inspire Global is 1.08 times more volatile than FIS Christian Stock. It trades about 0.09 of its total potential returns per unit of risk. FIS Christian Stock is currently generating about 0.12 per unit of volatility. If you would invest  2,269  in FIS Christian Stock on October 27, 2024 and sell it today you would earn a total of  736.00  from holding FIS Christian Stock or generate 32.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Inspire Global Hope  vs.  FIS Christian Stock

Inspire Global Hope

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inspire Global Hope has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Inspire Global is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

FIS Christian Stock

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FIS Christian Stock are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, FIS Christian is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Inspire Global and FIS Christian

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

The idea behind Inspire Global Hope and FIS Christian Stock 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.