Correlation Between FANDIFI TECHNOLOGY and National Retail
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and National Retail 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 FANDIFI TECHNOLOGY and National Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and National Retail Properties, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and National Retail 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 FANDIFI TECHNOLOGY with a short position of National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and National Retail.
Diversification Opportunities for FANDIFI TECHNOLOGY and National Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P are associated (or correlated) with National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and National Retail go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and National Retail
Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to generate 19.3 times more return on investment than National Retail. However, FANDIFI TECHNOLOGY is 19.3 times more volatile than National Retail Properties. It trades about 0.04 of its potential returns per unit of risk. National Retail Properties is currently generating about 0.02 per unit of risk. If you would invest 3.00 in FANDIFI TECHNOLOGY P on December 2, 2024 and sell it today you would lose (2.95) from holding FANDIFI TECHNOLOGY P or give up 98.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. National Retail Properties
Performance |
Timeline |
FANDIFI TECHNOLOGY |
National Retail Prop |
FANDIFI TECHNOLOGY and National Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FANDIFI TECHNOLOGY and National Retail
The main advantage of trading using opposite FANDIFI TECHNOLOGY and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail's long position.FANDIFI TECHNOLOGY vs. CODERE ONLINE LUX | FANDIFI TECHNOLOGY vs. Carsales | FANDIFI TECHNOLOGY vs. BG Foods | FANDIFI TECHNOLOGY vs. GungHo Online Entertainment |
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Check out your portfolio center.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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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