Correlation Between Cymbria and Fortis 1St

Can any of the company-specific risk be diversified away by investing in both Cymbria and Fortis 1St 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 Cymbria and Fortis 1St into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cymbria and Fortis 1St Cum, you can compare the effects of market volatilities on Cymbria and Fortis 1St 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 Cymbria with a short position of Fortis 1St. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cymbria and Fortis 1St.

Diversification Opportunities for Cymbria and Fortis 1St

-0.51

Correlation Coefficient

Cymbria  Fortis 1St

Excellent diversification

The 3 months correlation between Cymbria and Fortis is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cymbria and Fortis 1St Cum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortis 1St Cum and Cymbria 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 Cymbria are associated (or correlated) with Fortis 1St. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortis 1St Cum has no effect on the direction of Cymbria i.e., Cymbria and Fortis 1St go up and down completely randomly.

Pair Corralation between Cymbria and Fortis 1St

Assuming the 90 days trading horizon Cymbria is expected to generate 1.84 times more return on investment than Fortis 1St. However, Cymbria is 1.84 times more volatile than Fortis 1St Cum. It trades about 0.11 of its potential returns per unit of risk. Fortis 1St Cum is currently generating about 0.02 per unit of risk. If you would invest  7,090  in Cymbria on September 14, 2024 and sell it today you would earn a total of  525.00  from holding Cymbria or generate 7.4% return on investment over 90 days.

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

Cymbria  vs.  Fortis 1St Cum

Cymbria

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cymbria are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental drivers, Cymbria may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Fortis 1St Cum

Risk-Adjusted Performance

1 of 100

Very Weak

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

Pair Trading with Cymbria and Fortis 1St

The main advantage of trading using opposite Cymbria and Fortis 1St positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cymbria position performs unexpectedly, Fortis 1St 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 Fortis 1St will offset losses from the drop in Fortis 1St's long position.

The idea behind Cymbria and Fortis 1St Cum 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.