Formuepleje Mix Medium Stock Working Capital
FPIMME Stock | 300.70 1.20 0.40% |
Formuepleje |
FPIMME.CO fundamentals not found at this time
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Pair Trading with Formuepleje Mix
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Formuepleje Mix position performs unexpectedly, the other equity 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 Formuepleje Mix will appreciate offsetting losses from the drop in the long position's value.Moving together with Formuepleje Stock
Moving against Formuepleje Stock
0.85 | VWS | Vestas Wind Systems | PairCorr |
0.81 | NOVO-B | Novo Nordisk AS | PairCorr |
0.8 | GMAB | Genmab AS | PairCorr |
0.57 | CARL-B | Carlsberg AS | PairCorr |
0.5 | ORSTED | Orsted AS | PairCorr |
The ability to find closely correlated positions to Formuepleje Mix could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Formuepleje Mix when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Formuepleje Mix - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Formuepleje Mix Medium to buy it.
The correlation of Formuepleje Mix is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Formuepleje Mix moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Formuepleje Mix Medium moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Formuepleje Mix can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.