Correlation Between ABBEY MORTGAGE and FORTIS GLOBAL

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Can any of the company-specific risk be diversified away by investing in both ABBEY MORTGAGE and FORTIS GLOBAL 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 ABBEY MORTGAGE and FORTIS GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABBEY MORTGAGE BANK and FORTIS GLOBAL INSURANCE, you can compare the effects of market volatilities on ABBEY MORTGAGE and FORTIS GLOBAL 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 ABBEY MORTGAGE with a short position of FORTIS GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABBEY MORTGAGE and FORTIS GLOBAL.

Diversification Opportunities for ABBEY MORTGAGE and FORTIS GLOBAL

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ABBEY and FORTIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ABBEY MORTGAGE BANK and FORTIS GLOBAL INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORTIS GLOBAL INSURANCE and ABBEY MORTGAGE 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 ABBEY MORTGAGE BANK are associated (or correlated) with FORTIS GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORTIS GLOBAL INSURANCE has no effect on the direction of ABBEY MORTGAGE i.e., ABBEY MORTGAGE and FORTIS GLOBAL go up and down completely randomly.

Pair Corralation between ABBEY MORTGAGE and FORTIS GLOBAL

If you would invest  20.00  in FORTIS GLOBAL INSURANCE on August 26, 2025 and sell it today you would earn a total of  0.00  from holding FORTIS GLOBAL INSURANCE or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ABBEY MORTGAGE BANK  vs.  FORTIS GLOBAL INSURANCE

 Performance 
       Timeline  
ABBEY MORTGAGE BANK 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ABBEY MORTGAGE BANK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, ABBEY MORTGAGE is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
FORTIS GLOBAL INSURANCE 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days FORTIS GLOBAL INSURANCE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, FORTIS GLOBAL is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

ABBEY MORTGAGE and FORTIS GLOBAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ABBEY MORTGAGE and FORTIS GLOBAL

The main advantage of trading using opposite ABBEY MORTGAGE and FORTIS GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABBEY MORTGAGE position performs unexpectedly, FORTIS GLOBAL 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 FORTIS GLOBAL will offset losses from the drop in FORTIS GLOBAL's long position.
The idea behind ABBEY MORTGAGE BANK and FORTIS GLOBAL INSURANCE 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.
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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