Correlation Between Fly Play and Sn Hf

Can any of the company-specific risk be diversified away by investing in both Fly Play and Sn Hf 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 Fly Play and Sn Hf into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fly Play hf and Sn hf, you can compare the effects of market volatilities on Fly Play and Sn Hf 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 Fly Play with a short position of Sn Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fly Play and Sn Hf.

Diversification Opportunities for Fly Play and Sn Hf

0.02

Correlation Coefficient

Fly Play  Sn Hf

Significant diversification

The 3 months correlation between Fly and SYN is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fly Play hf and Sn hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sn hf and Fly Play 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 Fly Play hf are associated (or correlated) with Sn Hf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sn hf has no effect on the direction of Fly Play i.e., Fly Play and Sn Hf go up and down completely randomly.

Pair Corralation between Fly Play and Sn Hf

Assuming the 90 days trading horizon Fly Play hf is expected to under-perform the Sn Hf. In addition to that, Fly Play is 4.52 times more volatile than Sn hf. It trades about -0.08 of its total potential returns per unit of risk. Sn hf is currently generating about 0.06 per unit of volatility. If you would invest  3,160  in Sn hf on September 13, 2024 and sell it today you would earn a total of  140.00  from holding Sn hf or generate 4.43% return on investment over 90 days.

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

Fly Play hf  vs.  Sn hf

Fly Play hf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fly Play hf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Sn hf

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sn hf are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Sn Hf is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Fly Play and Sn Hf

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

The idea behind Fly Play hf and Sn hf 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.