Correlation Between Huntwicke Capital and Federal Agricultural
Can any of the company-specific risk be diversified away by investing in both Huntwicke Capital and Federal Agricultural 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 Huntwicke Capital and Federal Agricultural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntwicke Capital Group and Federal Agricultural Mortgage, you can compare the effects of market volatilities on Huntwicke Capital and Federal Agricultural 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 Huntwicke Capital with a short position of Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntwicke Capital and Federal Agricultural.
Diversification Opportunities for Huntwicke Capital and Federal Agricultural
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huntwicke and Federal is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Huntwicke Capital Group and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural and Huntwicke Capital 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 Huntwicke Capital Group are associated (or correlated) with Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of Huntwicke Capital i.e., Huntwicke Capital and Federal Agricultural go up and down completely randomly.
Pair Corralation between Huntwicke Capital and Federal Agricultural
If you would invest 2,474 in Federal Agricultural Mortgage on March 14, 2024 and sell it today you would earn a total of 50.00 from holding Federal Agricultural Mortgage or generate 2.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
Huntwicke Capital Group vs. Federal Agricultural Mortgage
Performance |
Timeline |
Huntwicke Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Federal Agricultural |
Huntwicke Capital and Federal Agricultural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huntwicke Capital and Federal Agricultural
The main advantage of trading using opposite Huntwicke Capital and Federal Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntwicke Capital position performs unexpectedly, Federal Agricultural 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 Federal Agricultural will offset losses from the drop in Federal Agricultural's long position.Huntwicke Capital vs. BlackRock | Huntwicke Capital vs. KKR Co LP | Huntwicke Capital vs. Apollo Global Management | Huntwicke Capital vs. Brookfield Asset Management |
Federal Agricultural vs. Citizens Financial Group | Federal Agricultural vs. Wells Fargo | Federal Agricultural vs. Equitable Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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