Correlation Between Frp Holdings and Bridgemarq Real

Can any of the company-specific risk be diversified away by investing in both Frp Holdings and Bridgemarq Real 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 Frp Holdings and Bridgemarq Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Frp Holdings Ord and Bridgemarq Real Estate, you can compare the effects of market volatilities on Frp Holdings and Bridgemarq Real 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 Frp Holdings with a short position of Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frp Holdings and Bridgemarq Real.

Diversification Opportunities for Frp Holdings and Bridgemarq Real

0.01

Correlation Coefficient

Frp Holdings  Bridgemarq Real

Significant diversification

The 3 months correlation between Frp and Bridgemarq is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Frp Holdings Ord and Bridgemarq Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgemarq Real Estate and Frp Holdings 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 Frp Holdings Ord are associated (or correlated) with Bridgemarq Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgemarq Real Estate has no effect on the direction of Frp Holdings i.e., Frp Holdings and Bridgemarq Real go up and down completely randomly.

Pair Corralation between Frp Holdings and Bridgemarq Real

Given the investment horizon of 90 days Frp Holdings is expected to generate 2.55 times less return on investment than Bridgemarq Real. But when comparing it to its historical volatility, Frp Holdings Ord is 1.41 times less risky than Bridgemarq Real. It trades about 0.02 of its potential returns per unit of risk. Bridgemarq Real Estate is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  823.00  in Bridgemarq Real Estate on December 4, 2024 and sell it today you would earn a total of  121.00  from holding Bridgemarq Real Estate or generate 14.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	51.21%
Values	Daily Returns

Frp Holdings Ord  vs.  Bridgemarq Real Estate

Frp Holdings Ord

Risk-Adjusted Performance

Very Weak

Over the last 90 days Frp Holdings Ord has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Frp Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Bridgemarq Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bridgemarq Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Frp Holdings and Bridgemarq Real

The main advantage of trading using opposite Frp Holdings and Bridgemarq Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frp Holdings position performs unexpectedly, Bridgemarq Real 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 Bridgemarq Real will offset losses from the drop in Bridgemarq Real's long position.

The idea behind Frp Holdings Ord and Bridgemarq Real Estate 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.