Correlation Between Bollor SE and FedEx
Can any of the company-specific risk be diversified away by investing in both Bollor SE and FedEx 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 Bollor SE and FedEx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bollor SE and FedEx, you can compare the effects of market volatilities on Bollor SE and FedEx 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 Bollor SE with a short position of FedEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bollor SE and FedEx.
Diversification Opportunities for Bollor SE and FedEx
Very good diversification
The 3 months correlation between Bollor and FedEx is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bollor SE and FedEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedEx and Bollor SE 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 Bollor SE are associated (or correlated) with FedEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FedEx has no effect on the direction of Bollor SE i.e., Bollor SE and FedEx go up and down completely randomly.
Pair Corralation between Bollor SE and FedEx
Assuming the 90 days horizon Bollor SE is expected to generate 3.76 times less return on investment than FedEx. But when comparing it to its historical volatility, Bollor SE is 1.56 times less risky than FedEx. It trades about 0.13 of its potential returns per unit of risk. FedEx is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 25,120 in FedEx on September 1, 2024 and sell it today you would earn a total of 3,520 from holding FedEx or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bollor SE vs. FedEx
Performance |
| Timeline |
| Bollor SE |
| FedEx |
Bollor SE and FedEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bollor SE and FedEx
The main advantage of trading using opposite Bollor SE and FedEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bollor SE position performs unexpectedly, FedEx 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 FedEx will offset losses from the drop in FedEx's long position.| Bollor SE vs. MTI WIRELESS EDGE | Bollor SE vs. Caltagirone SpA | Bollor SE vs. BlueScope Steel Limited | Bollor SE vs. DFS Furniture PLC |
| FedEx vs. Performance Food Group | FedEx vs. Gol Intelligent Airlines | FedEx vs. LIFEWAY FOODS | FedEx vs. Tyson Foods |
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.
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