Correlation Between Fastned BV and Just Eat
Can any of the company-specific risk be diversified away by investing in both Fastned BV and Just Eat 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 Fastned BV and Just Eat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastned BV and Just Eat Takeaway, you can compare the effects of market volatilities on Fastned BV and Just Eat 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 Fastned BV with a short position of Just Eat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastned BV and Just Eat.
Diversification Opportunities for Fastned BV and Just Eat
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fastned and Just is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Fastned BV and Just Eat Takeaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Just Eat Takeaway and Fastned BV 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 Fastned BV are associated (or correlated) with Just Eat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Just Eat Takeaway has no effect on the direction of Fastned BV i.e., Fastned BV and Just Eat go up and down completely randomly.
Pair Corralation between Fastned BV and Just Eat
Assuming the 90 days trading horizon Fastned BV is expected to generate 0.56 times more return on investment than Just Eat. However, Fastned BV is 1.79 times less risky than Just Eat. It trades about 0.01 of its potential returns per unit of risk. Just Eat Takeaway is currently generating about -0.04 per unit of risk. If you would invest 2,160 in Fastned BV on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Fastned BV or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fastned BV vs. Just Eat Takeaway
Performance |
Timeline |
Fastned BV |
Just Eat Takeaway |
Fastned BV and Just Eat Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fastned BV and Just Eat
The main advantage of trading using opposite Fastned BV and Just Eat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastned BV position performs unexpectedly, Just Eat 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 Just Eat will offset losses from the drop in Just Eat's long position.Fastned BV vs. Alfen Beheer BV | Fastned BV vs. BE Semiconductor Industries | Fastned BV vs. Just Eat Takeaway | Fastned BV vs. PostNL NV |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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