Correlation Between FC Investment and Intrum AB
Can any of the company-specific risk be diversified away by investing in both FC Investment and Intrum AB 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 FC Investment and Intrum AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FC Investment Trust and Intrum AB, you can compare the effects of market volatilities on FC Investment and Intrum AB 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 FC Investment with a short position of Intrum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and Intrum AB.
Diversification Opportunities for FC Investment and Intrum AB
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FCIT and Intrum is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Intrum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrum AB and FC Investment 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 FC Investment Trust are associated (or correlated) with Intrum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrum AB has no effect on the direction of FC Investment i.e., FC Investment and Intrum AB go up and down completely randomly.
Pair Corralation between FC Investment and Intrum AB
Assuming the 90 days trading horizon FC Investment Trust is expected to generate 0.2 times more return on investment than Intrum AB. However, FC Investment Trust is 5.03 times less risky than Intrum AB. It trades about 0.07 of its potential returns per unit of risk. Intrum AB is currently generating about -0.23 per unit of risk. If you would invest 114,939 in FC Investment Trust on July 20, 2025 and sell it today you would earn a total of 2,761 from holding FC Investment Trust or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
FC Investment Trust vs. Intrum AB
Performance |
| Timeline |
| FC Investment Trust |
| Intrum AB |
FC Investment and Intrum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and Intrum AB
The main advantage of trading using opposite FC Investment and Intrum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, Intrum AB 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 Intrum AB will offset losses from the drop in Intrum AB's long position.| FC Investment vs. Premier Foods PLC | FC Investment vs. Southern Copper Corp | FC Investment vs. Resolute Mining Limited | FC Investment vs. Lundin Mining Corp |
| Intrum AB vs. Spotify Technology SA | Intrum AB vs. Ashtead Technology Holdings | Intrum AB vs. Alfa Financial Software | Intrum AB vs. Axway Software SA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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