Correlation Between FNB ETN and CoreShares Preference

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

Diversification Opportunities for FNB ETN and CoreShares Preference

0.0

Correlation Coefficient

FNB ETN  CoreShares Preference

Pay attention - limited upside

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

Pair Corralation between FNB ETN and CoreShares Preference

If you would invest  236,100  in FNB ETN JPMORGQ on October 20, 2024 and sell it today you would earn a total of  33,700  from holding FNB ETN JPMORGQ or generate 14.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	54.1%
Values	Daily Returns

FNB ETN JPMORGQ  vs.  CoreShares Preference Share

FNB ETN JPMORGQ

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FNB ETN JPMORGQ are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, FNB ETN sustained solid returns over the last few months and may actually be approaching a breakup point.

CoreShares Preference

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with FNB ETN and CoreShares Preference

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

The idea behind FNB ETN JPMORGQ and CoreShares Preference Share 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.