Correlation Between Fattal 1998 and Sella Real

Can any of the company-specific risk be diversified away by investing in both Fattal 1998 and Sella 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 Fattal 1998 and Sella Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fattal 1998 Holdings and Sella Real Estate, you can compare the effects of market volatilities on Fattal 1998 and Sella 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 Fattal 1998 with a short position of Sella Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fattal 1998 and Sella Real.

Diversification Opportunities for Fattal 1998 and Sella Real

0.98

Correlation Coefficient

Fattal 1998  Sella Real

Almost no diversification

The 3 months correlation between Fattal and Sella is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Fattal 1998 Holdings and Sella Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sella Real Estate and Fattal 1998 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 Fattal 1998 Holdings are associated (or correlated) with Sella Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sella Real Estate has no effect on the direction of Fattal 1998 i.e., Fattal 1998 and Sella Real go up and down completely randomly.

Pair Corralation between Fattal 1998 and Sella Real

Assuming the 90 days trading horizon Fattal 1998 is expected to generate 1.09 times less return on investment than Sella Real. In addition to that, Fattal 1998 is 1.45 times more volatile than Sella Real Estate. It trades about 0.22 of its total potential returns per unit of risk. Sella Real Estate is currently generating about 0.34 per unit of volatility. If you would invest  70,257  in Sella Real Estate on September 2, 2024 and sell it today you would earn a total of  19,743  from holding Sella Real Estate or generate 28.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Fattal 1998 Holdings  vs.  Sella Real Estate

Fattal 1998 Holdings

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fattal 1998 Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Fattal 1998 sustained solid returns over the last few months and may actually be approaching a breakup point.

Sella Real Estate

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Sella Real Estate are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Sella Real unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fattal 1998 and Sella Real

The main advantage of trading using opposite Fattal 1998 and Sella Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fattal 1998 position performs unexpectedly, Sella 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 Sella Real will offset losses from the drop in Sella Real's long position.

The idea behind Fattal 1998 Holdings and Sella 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.