Correlation Between FC Investment and MTI Wireless
Can any of the company-specific risk be diversified away by investing in both FC Investment and MTI Wireless 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 MTI Wireless 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 MTI Wireless Edge, you can compare the effects of market volatilities on FC Investment and MTI Wireless 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 MTI Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and MTI Wireless.
Diversification Opportunities for FC Investment and MTI Wireless
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FCIT and MTI is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and MTI Wireless Edge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTI Wireless Edge 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 MTI Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTI Wireless Edge has no effect on the direction of FC Investment i.e., FC Investment and MTI Wireless go up and down completely randomly.
Pair Corralation between FC Investment and MTI Wireless
Assuming the 90 days trading horizon FC Investment Trust is expected to generate 0.19 times more return on investment than MTI Wireless. However, FC Investment Trust is 5.37 times less risky than MTI Wireless. It trades about 0.07 of its potential returns per unit of risk. MTI Wireless Edge is currently generating about -0.12 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FC Investment Trust vs. MTI Wireless Edge
Performance |
| Timeline |
| FC Investment Trust |
| MTI Wireless Edge |
FC Investment and MTI Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and MTI Wireless
The main advantage of trading using opposite FC Investment and MTI Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, MTI Wireless 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 MTI Wireless will offset losses from the drop in MTI Wireless' 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 |
| MTI Wireless vs. Rosebank Industries PLC | MTI Wireless vs. LendingTree | MTI Wireless vs. Westlake Chemical Corp | MTI Wireless vs. State Bank of |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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