Correlation Between Applied UV and FGI Industries
Can any of the company-specific risk be diversified away by investing in both Applied UV and FGI Industries 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 Applied UV and FGI Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied UV and FGI Industries, you can compare the effects of market volatilities on Applied UV and FGI Industries 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 Applied UV with a short position of FGI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied UV and FGI Industries.
Diversification Opportunities for Applied UV and FGI Industries
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Applied and FGI is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Applied UV and FGI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGI Industries and Applied UV 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 Applied UV are associated (or correlated) with FGI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGI Industries has no effect on the direction of Applied UV i.e., Applied UV and FGI Industries go up and down completely randomly.
Pair Corralation between Applied UV and FGI Industries
If you would invest 80.00 in FGI Industries on October 7, 2024 and sell it today you would earn a total of 3.00 from holding FGI Industries or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Applied UV vs. FGI Industries
Performance |
| Timeline |
| Applied UV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FGI Industries |
Applied UV and FGI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied UV and FGI Industries
The main advantage of trading using opposite Applied UV and FGI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied UV position performs unexpectedly, FGI Industries 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 FGI Industries will offset losses from the drop in FGI Industries' long position.| Applied UV vs. FGI Industries | Applied UV vs. Aterian | Applied UV vs. Energy Focu | Applied UV vs. MasterBrand |
| FGI Industries vs. Fundamental Global | FGI Industries vs. Yoshitsu Co Ltd | FGI Industries vs. Hour Loop | FGI Industries vs. Direct Digital Holdings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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