Correlation Between FDG Electric and Aptiv PLC
Can any of the company-specific risk be diversified away by investing in both FDG Electric and Aptiv PLC 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 FDG Electric and Aptiv PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and Aptiv PLC, you can compare the effects of market volatilities on FDG Electric and Aptiv PLC 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 FDG Electric with a short position of Aptiv PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Aptiv PLC.
Diversification Opportunities for FDG Electric and Aptiv PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Aptiv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and Aptiv PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptiv PLC and FDG Electric 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 FDG Electric Vehicles are associated (or correlated) with Aptiv PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptiv PLC has no effect on the direction of FDG Electric i.e., FDG Electric and Aptiv PLC go up and down completely randomly.
Pair Corralation between FDG Electric and Aptiv PLC
If you would invest 5,701 in Aptiv PLC on October 20, 2024 and sell it today you would earn a total of 415.00 from holding Aptiv PLC or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
FDG Electric Vehicles vs. Aptiv PLC
Performance |
| Timeline |
| FDG Electric Vehicles |
| Aptiv PLC |
FDG Electric and Aptiv PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and Aptiv PLC
The main advantage of trading using opposite FDG Electric and Aptiv PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, Aptiv PLC 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 Aptiv PLC will offset losses from the drop in Aptiv PLC's long position.| FDG Electric vs. Acco Brands | FDG Electric vs. Sable Offshore Corp | FDG Electric vs. AKITA Drilling | FDG Electric vs. ARIA Wireless Systems |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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