diversifiable risk of combining State Farm and One Choice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Farm Growth and One Choice In, you can compare the effects of market volatilities on State Farm and One Choice 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 State Farm with a short position of One Choice. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Farm and One Choice.
Diversification Opportunities for State Farm and One Choice
Pair Corralation between State Farm and One Choice
Assuming the 90 days horizon State Farm Growth is expected to generate 1.59 times more return on investment than One Choice. However, State Farm is 1.59 times more volatile than One Choice In. It trades about 0.3 of its potential returns per unit of risk. One Choice In is currently generating about 0.11 per unit of risk. If you would invest 10,847 in State Farm Growth on December 3, 2023 and sell it today you would earn a total of 445.00 from holding State Farm Growth or generate 4.1% return on investment over 90 days.
STATE FARM GROWTH vs. ONE CHOICE IN
State Farm and One Choice Volatility Contrast
Pair Trading with State Farm and One ChoiceThe main advantage of trading using opposite State Farm and One Choice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Farm position performs unexpectedly, One Choice 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 One Choice will offset losses from the drop in One Choice's long position. The idea behind State Farm Growth and One Choice In 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Track or share privately all of your investments from the convenience of any device
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Analyze and evaluate options and option chains as a potential hedge for your portfolios
State of the art Portfolio Manager to monitor and improve performance of your invested capital
All portfolio management and optimization tools to improve performance of your portfolios
|Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Compare the composition, asset allocations and performance of any two portfolios in your account
Quick portfolio dashboard that showcases your latest portfolios