Correlation Between FDG Electric and Century Aluminum
Can any of the company-specific risk be diversified away by investing in both FDG Electric and Century Aluminum 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 Century Aluminum 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 Century Aluminum, you can compare the effects of market volatilities on FDG Electric and Century Aluminum 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 Century Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Century Aluminum.
Diversification Opportunities for FDG Electric and Century Aluminum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Century is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and Century Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Aluminum 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 Century Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Aluminum has no effect on the direction of FDG Electric i.e., FDG Electric and Century Aluminum go up and down completely randomly.
Pair Corralation between FDG Electric and Century Aluminum
If you would invest 1,754 in Century Aluminum on September 3, 2024 and sell it today you would earn a total of 529.00 from holding Century Aluminum or generate 30.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
FDG Electric Vehicles vs. Century Aluminum
Performance |
| Timeline |
| FDG Electric Vehicles |
| Century Aluminum |
FDG Electric and Century Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and Century Aluminum
The main advantage of trading using opposite FDG Electric and Century Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, Century Aluminum 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 Century Aluminum will offset losses from the drop in Century Aluminum's long position.| FDG Electric vs. OppFi Inc | FDG Electric vs. Fortinet | FDG Electric vs. Brera Holdings PLC | FDG Electric vs. MetLife |
| Century Aluminum vs. Kaiser Aluminum | Century Aluminum vs. Commercial Metals | Century Aluminum vs. Steel Dynamics | Century Aluminum vs. Reliance Steel Aluminum |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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