diversifiable risk of combining Flagship Investments and New Hope into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flagship Investments and New Hope, you can compare the effects of market volatilities on Flagship Investments and New Hope 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 Flagship Investments with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flagship Investments and New Hope.
Diversification Opportunities for Flagship Investments and New Hope
Pair Corralation between Flagship Investments and New Hope
Assuming the 90 days trading horizon Flagship Investments is expected to generate 0.71 times more return on investment than New Hope. However, Flagship Investments is 1.42 times less risky than New Hope. It trades about 0.14 of its potential returns per unit of risk. New Hope is currently generating about -0.2 per unit of risk. If you would invest 181.00 in Flagship Investments on November 30, 2023 and sell it today you would earn a total of 9.00 from holding Flagship Investments or generate 4.97% return on investment over 90 days.
|3 Months [change]
Flagship Investments vs. New Hope
Flagship Investments and New Hope Volatility Contrast
Pair Trading with Flagship Investments and New HopeThe main advantage of trading using opposite Flagship Investments and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flagship Investments position performs unexpectedly, New Hope 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 New Hope will offset losses from the drop in New Hope's long position. The idea behind Flagship Investments and New Hope 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.
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Search for actively traded equities including funds and ETFs from over 30 global markets
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
|Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
State of the art Portfolio Manager to monitor and improve performance of your invested capital
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Find actively traded Exchange Traded Funds (ETF) from around the world
Quickly integrate customizable finance content to your own investment portal
|Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
|AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities