Correlation Between Ferrexpo PLC and CTPartners Executive

Can any of the company-specific risk be diversified away by investing in both Ferrexpo PLC and CTPartners Executive 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 Ferrexpo PLC and CTPartners Executive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ferrexpo PLC and CTPartners Executive Search, you can compare the effects of market volatilities on Ferrexpo PLC and CTPartners Executive 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 Ferrexpo PLC with a short position of CTPartners Executive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ferrexpo PLC and CTPartners Executive.

Diversification Opportunities for Ferrexpo PLC and CTPartners Executive

-0.09

Correlation Coefficient

Ferrexpo PLC  CTPartners Executive

Good diversification

The 3 months correlation between Ferrexpo and CTPartners is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ferrexpo PLC and CTPartners Executive Search in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTPartners Executive and Ferrexpo PLC 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 Ferrexpo PLC are associated (or correlated) with CTPartners Executive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTPartners Executive has no effect on the direction of Ferrexpo PLC i.e., Ferrexpo PLC and CTPartners Executive go up and down completely randomly.

Pair Corralation between Ferrexpo PLC and CTPartners Executive

If you would invest  57.00  in Ferrexpo PLC on September 14, 2024 and sell it today you would earn a total of  87.00  from holding Ferrexpo PLC or generate 152.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Ferrexpo PLC  vs.  CTPartners Executive Search

Ferrexpo PLC

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ferrexpo PLC are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Ferrexpo PLC reported solid returns over the last few months and may actually be approaching a breakup point.

CTPartners Executive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CTPartners Executive Search has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, CTPartners Executive is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Ferrexpo PLC and CTPartners Executive

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

The idea behind Ferrexpo PLC and CTPartners Executive Search 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.