Correlation Between FC Investment and Lowland Investment
Can any of the company-specific risk be diversified away by investing in both FC Investment and Lowland 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 FC Investment and Lowland Investment 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 Lowland Investment Co, you can compare the effects of market volatilities on FC Investment and Lowland 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 FC Investment with a short position of Lowland Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and Lowland Investment.
Diversification Opportunities for FC Investment and Lowland Investment
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FCIT and Lowland is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Lowland Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowland Investment 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 Lowland Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowland Investment has no effect on the direction of FC Investment i.e., FC Investment and Lowland Investment go up and down completely randomly.
Pair Corralation between FC Investment and Lowland Investment
Assuming the 90 days trading horizon FC Investment Trust is expected to generate 1.15 times more return on investment than Lowland Investment. However, FC Investment is 1.15 times more volatile than Lowland Investment Co. It trades about 0.13 of its potential returns per unit of risk. Lowland Investment Co is currently generating about 0.07 per unit of risk. If you would invest 115,836 in FC Investment Trust on August 20, 2025 and sell it today you would earn a total of 6,864 from holding FC Investment Trust or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FC Investment Trust vs. Lowland Investment Co
Performance |
| Timeline |
| FC Investment Trust |
| Lowland Investment |
FC Investment and Lowland Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and Lowland Investment
The main advantage of trading using opposite FC Investment and Lowland Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, Lowland 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 Lowland Investment will offset losses from the drop in Lowland Investment's long position.| FC Investment vs. Uniper SE | FC Investment vs. London Security Plc | FC Investment vs. Amicorp FS PLC | FC Investment vs. Christian Dior SE |
| Lowland Investment vs. Rheinmetall AG | Lowland Investment vs. Silvercorp Metals | Lowland Investment vs. Europa Metals | Lowland Investment vs. Infrastrutture Wireless Italiane |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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