Correlation Between Fobi AI and GreenPower
Can any of the company-specific risk be diversified away by investing in both Fobi AI and GreenPower 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 Fobi AI and GreenPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fobi AI and GreenPower Motor, you can compare the effects of market volatilities on Fobi AI and GreenPower 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 Fobi AI with a short position of GreenPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fobi AI and GreenPower.
Diversification Opportunities for Fobi AI and GreenPower
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fobi and GreenPower is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Fobi AI and GreenPower Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPower Motor and Fobi AI 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 Fobi AI are associated (or correlated) with GreenPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPower Motor has no effect on the direction of Fobi AI i.e., Fobi AI and GreenPower go up and down completely randomly.
Pair Corralation between Fobi AI and GreenPower
If you would invest 123.00 in GreenPower Motor on September 9, 2024 and sell it today you would earn a total of 5.00 from holding GreenPower Motor or generate 4.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Fobi AI vs. GreenPower Motor
Performance |
Timeline |
Fobi AI |
GreenPower Motor |
Fobi AI and GreenPower Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fobi AI and GreenPower
The main advantage of trading using opposite Fobi AI and GreenPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fobi AI position performs unexpectedly, GreenPower 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 GreenPower will offset losses from the drop in GreenPower's long position.Fobi AI vs. Quisitive Technology Solutions | Fobi AI vs. ARHT Media | Fobi AI vs. Gatekeeper Systems | Fobi AI vs. Plurilock Security |
GreenPower vs. NFI Group | GreenPower vs. Docebo Inc | GreenPower vs. WELL Health Technologies | GreenPower vs. Dye Durham |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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