Correlation Between AFC Energy and Fiinu PLC

Can any of the company-specific risk be diversified away by investing in both AFC Energy and Fiinu PLC 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 AFC Energy and Fiinu PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AFC Energy plc and Fiinu PLC, you can compare the effects of market volatilities on AFC Energy and Fiinu PLC 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 AFC Energy with a short position of Fiinu PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFC Energy and Fiinu PLC.

Diversification Opportunities for AFC Energy and Fiinu PLC

0.18

Correlation Coefficient

AFC Energy  Fiinu PLC

Average diversification

The 3 months correlation between AFC and Fiinu is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding AFC Energy plc and Fiinu PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiinu PLC and AFC Energy 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 AFC Energy plc are associated (or correlated) with Fiinu PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiinu PLC has no effect on the direction of AFC Energy i.e., AFC Energy and Fiinu PLC go up and down completely randomly.

Pair Corralation between AFC Energy and Fiinu PLC

Assuming the 90 days trading horizon AFC Energy is expected to generate 2.65 times less return on investment than Fiinu PLC. In addition to that, AFC Energy is 1.93 times more volatile than Fiinu PLC. It trades about 0.02 of its total potential returns per unit of risk. Fiinu PLC is currently generating about 0.1 per unit of volatility. If you would invest  713.00  in Fiinu PLC on May 6, 2025 and sell it today you would earn a total of  162.00  from holding Fiinu PLC or generate 22.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AFC Energy plc  vs.  Fiinu PLC

AFC Energy plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AFC Energy plc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, AFC Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Fiinu PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fiinu PLC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Fiinu PLC unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AFC Energy and Fiinu PLC

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

The idea behind AFC Energy plc and Fiinu PLC 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.