Correlation Between Future Generation and Aeon Metals
Can any of the company-specific risk be diversified away by investing in both Future Generation and Aeon Metals 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 Future Generation and Aeon Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Future Generation Global and Aeon Metals, you can compare the effects of market volatilities on Future Generation and Aeon Metals 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 Future Generation with a short position of Aeon Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Generation and Aeon Metals.
Diversification Opportunities for Future Generation and Aeon Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Future and Aeon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Future Generation Global and Aeon Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Metals and Future Generation 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 Future Generation Global are associated (or correlated) with Aeon Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Metals has no effect on the direction of Future Generation i.e., Future Generation and Aeon Metals go up and down completely randomly.
Pair Corralation between Future Generation and Aeon Metals
If you would invest 136.00 in Future Generation Global on October 6, 2024 and sell it today you would earn a total of 6.00 from holding Future Generation Global or generate 4.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 97.62% |
Values | Daily Returns |
Future Generation Global vs. Aeon Metals
Performance |
Timeline |
Future Generation Global |
Aeon Metals |
Future Generation and Aeon Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Future Generation and Aeon Metals
The main advantage of trading using opposite Future Generation and Aeon Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Generation position performs unexpectedly, Aeon Metals 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 Aeon Metals will offset losses from the drop in Aeon Metals' long position.Future Generation vs. Sky Metals | Future Generation vs. Flagship Investments | Future Generation vs. Hudson Investment Group | Future Generation vs. Stelar Metals |
Aeon Metals vs. Northern Star Resources | Aeon Metals vs. Evolution Mining | Aeon Metals vs. Bluescope Steel | Aeon Metals vs. Aneka Tambang Tbk |
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 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.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |