Correlation Between Applied Finance and Ft 9026

Can any of the company-specific risk be diversified away by investing in both Applied Finance and Ft 9026 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 Applied Finance and Ft 9026 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Applied Finance Explorer and Ft 9026 Spdrucker, you can compare the effects of market volatilities on Applied Finance and Ft 9026 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 Applied Finance with a short position of Ft 9026. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Finance and Ft 9026.

Diversification Opportunities for Applied Finance and Ft 9026

0.0

Correlation Coefficient

Applied Finance  Ft 9026

Pay attention - limited upside

The 3 months correlation between Applied and FUDDUX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied Finance Explorer and Ft 9026 Spdrucker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ft 9026 Spdrucker and Applied Finance 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 Applied Finance Explorer are associated (or correlated) with Ft 9026. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ft 9026 Spdrucker has no effect on the direction of Applied Finance i.e., Applied Finance and Ft 9026 go up and down completely randomly.

Pair Corralation between Applied Finance and Ft 9026

If you would invest  2,247  in Applied Finance Explorer on September 2, 2024 and sell it today you would earn a total of  181.00  from holding Applied Finance Explorer or generate 8.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Applied Finance Explorer  vs.  Ft 9026 Spdrucker

Applied Finance Explorer

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Applied Finance Explorer are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Applied Finance may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Ft 9026 Spdrucker

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ft 9026 Spdrucker has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Ft 9026 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Applied Finance and Ft 9026

The main advantage of trading using opposite Applied Finance and Ft 9026 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Finance position performs unexpectedly, Ft 9026 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 Ft 9026 will offset losses from the drop in Ft 9026's long position.

The idea behind Applied Finance Explorer and Ft 9026 Spdrucker 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.

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.