Correlation Between Cboe UK and Fastly
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By analyzing existing cross correlation between Cboe UK Consumer and Fastly Inc Cl, you can compare the effects of market volatilities on Cboe UK and Fastly 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 Cboe UK with a short position of Fastly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Fastly.
Diversification Opportunities for Cboe UK and Fastly
Very weak diversification
The 3 months correlation between Cboe and Fastly is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Fastly Inc Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastly Inc Cl and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Fastly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastly Inc Cl has no effect on the direction of Cboe UK i.e., Cboe UK and Fastly go up and down completely randomly.
Pair Corralation between Cboe UK and Fastly
Assuming the 90 days trading horizon Cboe UK is expected to generate 1.4 times less return on investment than Fastly. But when comparing it to its historical volatility, Cboe UK Consumer is 4.44 times less risky than Fastly. It trades about 0.19 of its potential returns per unit of risk. Fastly Inc Cl is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 777.00 in Fastly Inc Cl on September 3, 2024 and sell it today you would earn a total of 183.00 from holding Fastly Inc Cl or generate 23.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Fastly Inc Cl
Performance |
| Timeline |
Cboe UK and Fastly Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Fastly Inc Cl
Pair trading matchups for Fastly
Pair Trading with Cboe UK and Fastly
The main advantage of trading using opposite Cboe UK and Fastly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Fastly 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 Fastly will offset losses from the drop in Fastly's long position.| Cboe UK vs. CAP LEASE AVIATION | Cboe UK vs. Melia Hotels | Cboe UK vs. Park Hotels Resorts | Cboe UK vs. Broadridge Financial Solutions |
| Fastly vs. MyHealthChecked Plc | Fastly vs. Induction Healthcare Group | Fastly vs. Target Healthcare REIT | Fastly vs. Panther Metals PLC |
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 Correlations module to find global opportunities by holding instruments from different markets.
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