Correlation Between Freeport McMoRan and Fair Oaks
Can any of the company-specific risk be diversified away by investing in both Freeport McMoRan and Fair Oaks 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 Freeport McMoRan and Fair Oaks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freeport McMoRan and Fair Oaks Income, you can compare the effects of market volatilities on Freeport McMoRan and Fair Oaks 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 Freeport McMoRan with a short position of Fair Oaks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freeport McMoRan and Fair Oaks.
Diversification Opportunities for Freeport McMoRan and Fair Oaks
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Freeport and Fair is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Freeport McMoRan and Fair Oaks Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Oaks Income and Freeport McMoRan 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 Freeport McMoRan are associated (or correlated) with Fair Oaks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Oaks Income has no effect on the direction of Freeport McMoRan i.e., Freeport McMoRan and Fair Oaks go up and down completely randomly.
Pair Corralation between Freeport McMoRan and Fair Oaks
If you would invest 57.00 in Fair Oaks Income on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Fair Oaks Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Freeport McMoRan vs. Fair Oaks Income
Performance |
| Timeline |
| Freeport McMoRan |
| Fair Oaks Income |
Freeport McMoRan and Fair Oaks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freeport McMoRan and Fair Oaks
The main advantage of trading using opposite Freeport McMoRan and Fair Oaks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freeport McMoRan position performs unexpectedly, Fair Oaks 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 Fair Oaks will offset losses from the drop in Fair Oaks' long position.| Freeport McMoRan vs. Lowland Investment Co | Freeport McMoRan vs. Supermarket Income REIT | Freeport McMoRan vs. Aberdeen Diversified Income | Freeport McMoRan vs. Bankers Investment Trust |
| Fair Oaks vs. Toyota Motor Corp | Fair Oaks vs. SoftBank Group Corp | Fair Oaks vs. OTP Bank Nyrt | Fair Oaks vs. Freeport McMoRan |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |