Correlation Between American Outdoor and FG Group
Can any of the company-specific risk be diversified away by investing in both American Outdoor and FG Group 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 American Outdoor and FG Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Outdoor Brands and FG Group Holdings, you can compare the effects of market volatilities on American Outdoor and FG Group 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 American Outdoor with a short position of FG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Outdoor and FG Group.
Diversification Opportunities for American Outdoor and FG Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and FGH is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding American Outdoor Brands and FG Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Group Holdings and American Outdoor 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 American Outdoor Brands are associated (or correlated) with FG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Group Holdings has no effect on the direction of American Outdoor i.e., American Outdoor and FG Group go up and down completely randomly.
Pair Corralation between American Outdoor and FG Group
If you would invest 852.00 in American Outdoor Brands on September 1, 2024 and sell it today you would earn a total of 129.00 from holding American Outdoor Brands or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
American Outdoor Brands vs. FG Group Holdings
Performance |
| Timeline |
| American Outdoor Brands |
| FG Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Outdoor and FG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Outdoor and FG Group
The main advantage of trading using opposite American Outdoor and FG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Outdoor position performs unexpectedly, FG Group 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 Group will offset losses from the drop in FG Group's long position.| American Outdoor vs. LCI Industries | American Outdoor vs. MCBC Holdings | American Outdoor vs. Winnebago Industries | American Outdoor vs. Thor Industries |
| FG Group vs. OneSpaWorld Holdings | FG Group vs. Games Workshop Group | FG Group vs. Johnson Outdoors | FG Group vs. American Outdoor Brands |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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