Correlation Between FNB ETN and Brimstone Investment

Can any of the company-specific risk be diversified away by investing in both FNB ETN and Brimstone Investment 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 FNB ETN and Brimstone Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FNB ETN JPMORGQ and Brimstone Investment, you can compare the effects of market volatilities on FNB ETN and Brimstone Investment 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 FNB ETN with a short position of Brimstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNB ETN and Brimstone Investment.

Diversification Opportunities for FNB ETN and Brimstone Investment

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Correlation Coefficient

FNB ETN  Brimstone Investment

Pay attention - limited upside

The 3 months correlation between FNB and Brimstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FNB ETN JPMORGQ and Brimstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brimstone Investment and FNB ETN 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 FNB ETN JPMORGQ are associated (or correlated) with Brimstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brimstone Investment has no effect on the direction of FNB ETN i.e., FNB ETN and Brimstone Investment go up and down completely randomly.

Pair Corralation between FNB ETN and Brimstone Investment

Assuming the 90 days trading horizon FNB ETN JPMORGQ is expected to generate 0.38 times more return on investment than Brimstone Investment. However, FNB ETN JPMORGQ is 2.62 times less risky than Brimstone Investment. It trades about 0.03 of its potential returns per unit of risk. Brimstone Investment is currently generating about -0.02 per unit of risk. If you would invest  255,100  in FNB ETN JPMORGQ on October 7, 2024 and sell it today you would earn a total of  1,400  from holding FNB ETN JPMORGQ or generate 0.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	48.72%
Values	Daily Returns

FNB ETN JPMORGQ  vs.  Brimstone Investment

FNB ETN JPMORGQ

Risk-Adjusted Performance

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Very Weak

Over the last 90 days FNB ETN JPMORGQ has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, FNB ETN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Brimstone Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brimstone Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with FNB ETN and Brimstone Investment

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

The idea behind FNB ETN JPMORGQ and Brimstone Investment 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.