Correlation Between First Abacus and Monde Nissin
Can any of the company-specific risk be diversified away by investing in both First Abacus and Monde Nissin 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 First Abacus and Monde Nissin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Abacus Financial and Monde Nissin Corp, you can compare the effects of market volatilities on First Abacus and Monde Nissin 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 First Abacus with a short position of Monde Nissin. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Abacus and Monde Nissin.
Diversification Opportunities for First Abacus and Monde Nissin
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Monde is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding First Abacus Financial and Monde Nissin Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monde Nissin Corp and First Abacus 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 First Abacus Financial are associated (or correlated) with Monde Nissin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monde Nissin Corp has no effect on the direction of First Abacus i.e., First Abacus and Monde Nissin go up and down completely randomly.
Pair Corralation between First Abacus and Monde Nissin
Assuming the 90 days trading horizon First Abacus Financial is expected to generate 1.95 times more return on investment than Monde Nissin. However, First Abacus is 1.95 times more volatile than Monde Nissin Corp. It trades about -0.03 of its potential returns per unit of risk. Monde Nissin Corp is currently generating about -0.08 per unit of risk. If you would invest 69.00 in First Abacus Financial on December 1, 2024 and sell it today you would lose (7.00) from holding First Abacus Financial or give up 10.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 41.67% |
Values | Daily Returns |
First Abacus Financial vs. Monde Nissin Corp
Performance |
Timeline |
First Abacus Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Monde Nissin Corp |
First Abacus and Monde Nissin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Abacus and Monde Nissin
The main advantage of trading using opposite First Abacus and Monde Nissin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Abacus position performs unexpectedly, Monde Nissin 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 Monde Nissin will offset losses from the drop in Monde Nissin's long position.First Abacus vs. Top Frontier Investment | First Abacus vs. Atlas Consolidated Mining | First Abacus vs. Jollibee Foods Corp | First Abacus vs. Semirara Mining Corp |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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