Correlation Between FCS Software and Selan Exploration
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By analyzing existing cross correlation between FCS Software Solutions and Selan Exploration Technology, you can compare the effects of market volatilities on FCS Software and Selan Exploration 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 FCS Software with a short position of Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of FCS Software and Selan Exploration.
Diversification Opportunities for FCS Software and Selan Exploration
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FCS and Selan is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding FCS Software Solutions and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration and FCS Software 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 FCS Software Solutions are associated (or correlated) with Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of FCS Software i.e., FCS Software and Selan Exploration go up and down completely randomly.
Pair Corralation between FCS Software and Selan Exploration
Assuming the 90 days trading horizon FCS Software Solutions is expected to under-perform the Selan Exploration. But the stock apears to be less risky and, when comparing its historical volatility, FCS Software Solutions is 1.22 times less risky than Selan Exploration. The stock trades about -0.05 of its potential returns per unit of risk. The Selan Exploration Technology is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 88,025 in Selan Exploration Technology on October 5, 2024 and sell it today you would lose (1,265) from holding Selan Exploration Technology or give up 1.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
FCS Software Solutions vs. Selan Exploration Technology
Performance |
Timeline |
FCS Software Solutions |
Selan Exploration |
FCS Software and Selan Exploration Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FCS Software and Selan Exploration
The main advantage of trading using opposite FCS Software and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FCS Software position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration's long position.FCS Software vs. State Bank of | FCS Software vs. Life Insurance | FCS Software vs. HDFC Bank Limited | FCS Software vs. ICICI Bank Limited |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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