Correlation Between Focus Financial and 3i Group
Can any of the company-specific risk be diversified away by investing in both Focus Financial and 3i Group 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 Focus Financial and 3i Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Financial Partners and 3i Group plc, you can compare the effects of market volatilities on Focus Financial and 3i Group 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 Focus Financial with a short position of 3i Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Financial and 3i Group.
Diversification Opportunities for Focus Financial and 3i Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Focus and TGOPF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Focus Financial Partners and 3i Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3i Group plc and Focus Financial 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 Focus Financial Partners are associated (or correlated) with 3i Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3i Group plc has no effect on the direction of Focus Financial i.e., Focus Financial and 3i Group go up and down completely randomly.
Pair Corralation between Focus Financial and 3i Group
If you would invest 4,656 in 3i Group plc on December 2, 2024 and sell it today you would earn a total of 334.00 from holding 3i Group plc or generate 7.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Focus Financial Partners vs. 3i Group plc
Performance |
Timeline |
Focus Financial Partners |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
3i Group plc |
Focus Financial and 3i Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Focus Financial and 3i Group
The main advantage of trading using opposite Focus Financial and 3i Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Financial position performs unexpectedly, 3i Group 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 3i Group will offset losses from the drop in 3i Group's long position.Focus Financial vs. Federated Premier Municipal | Focus Financial vs. Blackrock Muniyield | Focus Financial vs. Diamond Hill Investment | Focus Financial vs. NXG NextGen Infrastructure |
3i Group vs. Partners Group | 3i Group vs. Burford Capital | 3i Group vs. PennantPark Investment | 3i Group vs. 3i Group PLC |
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.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |