Correlation Between Foreign Trade and Advantex Marketing

Can any of the company-specific risk be diversified away by investing in both Foreign Trade and Advantex Marketing 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 Foreign Trade and Advantex Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Foreign Trade Bank and Advantex Marketing International, you can compare the effects of market volatilities on Foreign Trade and Advantex Marketing 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 Foreign Trade with a short position of Advantex Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foreign Trade and Advantex Marketing.

Diversification Opportunities for Foreign Trade and Advantex Marketing

0.0

Correlation Coefficient

Foreign Trade  Advantex Marketing

Pay attention - limited upside

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

Pair Corralation between Foreign Trade and Advantex Marketing

If you would invest  0.28  in Advantex Marketing International on August 27, 2025 and sell it today you would earn a total of  0.00  from holding Advantex Marketing International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Foreign Trade Bank  vs.  Advantex Marketing Internation

Foreign Trade Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days Foreign Trade Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Foreign Trade is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Advantex Marketing

Risk-Adjusted Performance

Weakest

Over the last 90 days Advantex Marketing International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Advantex Marketing is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Foreign Trade and Advantex Marketing

The main advantage of trading using opposite Foreign Trade and Advantex Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foreign Trade position performs unexpectedly, Advantex Marketing 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 Advantex Marketing will offset losses from the drop in Advantex Marketing's long position.

The idea behind Foreign Trade Bank and Advantex Marketing International 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.