Correlation Between Finexia Financial and ABACUS STORAGE | FNX.AU vs. ASK.AU

Correlation Between Finexia Financial and ABACUS STORAGE

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Can any of the company-specific risk be diversified away by investing in both Finexia Financial and ABACUS STORAGE 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 Finexia Financial and ABACUS STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finexia Financial Group and ABACUS STORAGE KING, you can compare the effects of market volatilities on Finexia Financial and ABACUS STORAGE 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 Finexia Financial with a short position of ABACUS STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and ABACUS STORAGE.

Diversification Opportunities for Finexia Financial and ABACUS STORAGE

FinexiaABACUSDiversified AwayFinexiaABACUSDiversified Away100%
-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between Finexia and ABACUS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and ABACUS STORAGE KING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABACUS STORAGE KING and Finexia Financial 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 Finexia Financial Group are associated (or correlated) with ABACUS STORAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABACUS STORAGE KING has no effect on the direction of Finexia Financial i.e., Finexia Financial and ABACUS STORAGE go up and down completely randomly.

Pair Corralation between Finexia Financial and ABACUS STORAGE

Assuming the 90 days trading horizon Finexia Financial Group is expected to under-perform the ABACUS STORAGE. In addition to that, Finexia Financial is 2.69 times more volatile than ABACUS STORAGE KING. It trades about -0.21 of its total potential returns per unit of risk. ABACUS STORAGE KING is currently generating about -0.11 per unit of volatility. If you would invest  120.00  in ABACUS STORAGE KING on September 21, 2024 and sell it today you would lose (3.00) from holding ABACUS STORAGE KING or give up 2.5% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Finexia Financial Group  vs.  ABACUS STORAGE KING

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -10-50510
JavaScript chart by amCharts 3.21.15FNX ASK
       Timeline  
Finexia Financial 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Finexia Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Finexia Financial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.250.260.270.280.290.30.310.32
ABACUS STORAGE KING 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ABACUS STORAGE KING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward-looking signals remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1.151.21.251.3

Finexia Financial and ABACUS STORAGE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.36-7.76-5.16-2.560.02.65.27.810.4 0.050.100.150.20
JavaScript chart by amCharts 3.21.15FNX ASK
       Returns  

Pair Trading with Finexia Financial and ABACUS STORAGE

The main advantage of trading using opposite Finexia Financial and ABACUS STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial position performs unexpectedly, ABACUS STORAGE 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 ABACUS STORAGE will offset losses from the drop in ABACUS STORAGE's long position.
The idea behind Finexia Financial Group and ABACUS STORAGE KING 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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