Correlation Between FMC and International Bethlehem
Can any of the company-specific risk be diversified away by investing in both FMC and International Bethlehem 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 FMC and International Bethlehem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FMC Corporation and International Bethlehem Mining, you can compare the effects of market volatilities on FMC and International Bethlehem 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 FMC with a short position of International Bethlehem. Check out your portfolio center. Please also check ongoing floating volatility patterns of FMC and International Bethlehem.
Diversification Opportunities for FMC and International Bethlehem
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FMC and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FMC Corp. and International Bethlehem Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Bethlehem and FMC 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 FMC Corporation are associated (or correlated) with International Bethlehem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Bethlehem has no effect on the direction of FMC i.e., FMC and International Bethlehem go up and down completely randomly.
Pair Corralation between FMC and International Bethlehem
If you would invest 4,914 in FMC Corporation on October 22, 2024 and sell it today you would earn a total of 429.00 from holding FMC Corporation or generate 8.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
FMC Corp. vs. International Bethlehem Mining
Performance |
Timeline |
FMC Corporation |
International Bethlehem |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FMC and International Bethlehem Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FMC and International Bethlehem
The main advantage of trading using opposite FMC and International Bethlehem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FMC position performs unexpectedly, International Bethlehem 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 International Bethlehem will offset losses from the drop in International Bethlehem's long position.The idea behind FMC Corporation and International Bethlehem Mining 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.International Bethlehem vs. Renoworks Software | International Bethlehem vs. VIP Entertainment Technologies | International Bethlehem vs. XXIX Metal Corp | International Bethlehem vs. Primaris Retail RE |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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