Correlation Between FFHG and Trust For

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

By analyzing existing cross correlation between FFHG and Trust For Professional, you can compare the effects of market volatilities on FFHG and Trust For 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 FFHG with a short position of Trust For. Check out your portfolio center. Please also check ongoing floating volatility patterns of FFHG and Trust For.

Diversification Opportunities for FFHG and Trust For

0.0

Correlation Coefficient

FFHG  Trust For

Pay attention - limited upside

The 3 months correlation between FFHG and Trust is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FFHG and Trust For Professional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust For Professional and FFHG 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 FFHG are associated (or correlated) with Trust For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust For Professional has no effect on the direction of FFHG i.e., FFHG and Trust For go up and down completely randomly.

Pair Corralation between FFHG and Trust For

If you would invest (100.00) in FFHG on December 28, 2024 and sell it today you would earn a total of  100.00  from holding FFHG or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

FFHG  vs.  Trust For Professional

FFHG

Risk-Adjusted Performance

Very Weak

Over the last 90 days FFHG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, FFHG is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Trust For Professional

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trust For Professional has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Pair Trading with FFHG and Trust For

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

The idea behind FFHG and Trust For Professional 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.