Correlation Between Aehr Test and FG Annuities
Can any of the company-specific risk be diversified away by investing in both Aehr Test and FG Annuities 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 Aehr Test and FG Annuities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and FG Annuities Life, you can compare the effects of market volatilities on Aehr Test and FG Annuities 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 Aehr Test with a short position of FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and FG Annuities.
Diversification Opportunities for Aehr Test and FG Annuities
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aehr and FGN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and FG Annuities Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Annuities Life and Aehr Test 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 Aehr Test Systems are associated (or correlated) with FG Annuities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Annuities Life has no effect on the direction of Aehr Test i.e., Aehr Test and FG Annuities go up and down completely randomly.
Pair Corralation between Aehr Test and FG Annuities
Given the investment horizon of 90 days Aehr Test is expected to generate 28.0 times less return on investment than FG Annuities. In addition to that, Aehr Test is 13.92 times more volatile than FG Annuities Life. It trades about 0.0 of its total potential returns per unit of risk. FG Annuities Life is currently generating about 0.16 per unit of volatility. If you would invest 2,382 in FG Annuities Life on September 3, 2024 and sell it today you would earn a total of 383.00 from holding FG Annuities Life or generate 16.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 49.49% |
| Values | Daily Returns |
Aehr Test Systems vs. FG Annuities Life
Performance |
| Timeline |
| Aehr Test Systems |
| FG Annuities Life |
Aehr Test and FG Annuities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and FG Annuities
The main advantage of trading using opposite Aehr Test and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, FG Annuities 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 FG Annuities will offset losses from the drop in FG Annuities' long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| FG Annuities vs. Sphere Entertainment Co | FG Annuities vs. Zhihu Inc ADR | FG Annuities vs. National CineMedia | FG Annuities vs. Sealed Air |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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