Correlation Between FIBI Holdings and Kerur Holdings

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

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

Diversification Opportunities for FIBI Holdings and Kerur Holdings

0.0

Correlation Coefficient

FIBI Holdings  Kerur Holdings

Pay attention - limited upside

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

Pair Corralation between FIBI Holdings and Kerur Holdings

If you would invest  689,500  in Kerur Holdings on September 15, 2024 and sell it today you would earn a total of  108,900  from holding Kerur Holdings or generate 15.79% return on investment over 90 days.

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

FIBI Holdings  vs.  Kerur Holdings

FIBI Holdings

Risk-Adjusted Performance

0 of 100

Very Strong

Over the last 90 days FIBI Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, FIBI Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Kerur Holdings

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kerur Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Kerur Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FIBI Holdings and Kerur Holdings

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

The idea behind FIBI Holdings and Kerur Holdings 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.