Correlation Between Amedeo Air and FC Investment
Can any of the company-specific risk be diversified away by investing in both Amedeo Air and FC Investment 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 Amedeo Air and FC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amedeo Air Four and FC Investment Trust, you can compare the effects of market volatilities on Amedeo Air and FC Investment 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 Amedeo Air with a short position of FC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and FC Investment.
Diversification Opportunities for Amedeo Air and FC Investment
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amedeo and FCIT is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and FC Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FC Investment Trust and Amedeo Air 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 Amedeo Air Four are associated (or correlated) with FC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FC Investment Trust has no effect on the direction of Amedeo Air i.e., Amedeo Air and FC Investment go up and down completely randomly.
Pair Corralation between Amedeo Air and FC Investment
Assuming the 90 days trading horizon Amedeo Air is expected to generate 5.87 times less return on investment than FC Investment. But when comparing it to its historical volatility, Amedeo Air Four is 1.11 times less risky than FC Investment. It trades about 0.03 of its potential returns per unit of risk. FC Investment Trust is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 115,736 in FC Investment Trust on August 15, 2025 and sell it today you would earn a total of 8,364 from holding FC Investment Trust or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amedeo Air Four vs. FC Investment Trust
Performance |
| Timeline |
| Amedeo Air Four |
| FC Investment Trust |
Amedeo Air and FC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and FC Investment
The main advantage of trading using opposite Amedeo Air and FC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air position performs unexpectedly, FC Investment 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 FC Investment will offset losses from the drop in FC Investment's long position.| Amedeo Air vs. Qualcomm | Amedeo Air vs. Weiss Korea Opportunity | Amedeo Air vs. River and Mercantile | Amedeo Air vs. Chrysalis Investments |
| FC Investment vs. DFS Furniture PLC | FC Investment vs. American Homes 4 | FC Investment vs. Clean Power Hydrogen | FC Investment vs. Wheaton Precious Metals |
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.
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