Correlation Between FNB ETN and Libstar Holdings

Can any of the company-specific risk be diversified away by investing in both FNB ETN and Libstar Holdings 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 Libstar Holdings 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 Libstar Holdings, you can compare the effects of market volatilities on FNB ETN and Libstar Holdings 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 Libstar Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNB ETN and Libstar Holdings.

Diversification Opportunities for FNB ETN and Libstar Holdings

0.0

Correlation Coefficient

FNB ETN  Libstar Holdings

Pay attention - limited upside

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

Pair Corralation between FNB ETN and Libstar Holdings

If you would invest  41,600  in Libstar Holdings on October 7, 2024 and sell it today you would lose (500.00) from holding Libstar Holdings or give up 1.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

FNB ETN JPMORGQ  vs.  Libstar Holdings

FNB ETN JPMORGQ

Risk-Adjusted Performance

0 of 100

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.

Libstar Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Libstar Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Libstar Holdings is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with FNB ETN and Libstar Holdings

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

The idea behind FNB ETN JPMORGQ and Libstar Holdings 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 CEOs Directory module to screen CEOs from public companies around the world.