Correlation Between Future Generation and APN Convenience
Can any of the company-specific risk be diversified away by investing in both Future Generation and APN Convenience 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 APN Convenience 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 APN Convenience Retail, you can compare the effects of market volatilities on Future Generation and APN Convenience 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 APN Convenience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Generation and APN Convenience.
Diversification Opportunities for Future Generation and APN Convenience
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Future and APN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Future Generation Global and APN Convenience Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APN Convenience Retail 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 APN Convenience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APN Convenience Retail has no effect on the direction of Future Generation i.e., Future Generation and APN Convenience go up and down completely randomly.
Pair Corralation between Future Generation and APN Convenience
If you would invest 142.00 in Future Generation Global on December 28, 2024 and sell it today you would earn a total of 4.00 from holding Future Generation Global or generate 2.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Future Generation Global vs. APN Convenience Retail
Performance |
Timeline |
Future Generation Global |
APN Convenience Retail |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Future Generation and APN Convenience Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Future Generation and APN Convenience
The main advantage of trading using opposite Future Generation and APN Convenience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Generation position performs unexpectedly, APN Convenience 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 APN Convenience will offset losses from the drop in APN Convenience's long position.Future Generation vs. Insurance Australia Group | Future Generation vs. Aussie Broadband | Future Generation vs. EROAD | Future Generation vs. Metro Mining |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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