Correlation Between FDG Electric and Nabors Industries
Can any of the company-specific risk be diversified away by investing in both FDG Electric and Nabors 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 FDG Electric and Nabors Industries 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 Nabors Industries, you can compare the effects of market volatilities on FDG Electric and Nabors 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 FDG Electric with a short position of Nabors Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Nabors Industries.
Diversification Opportunities for FDG Electric and Nabors Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Nabors is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and Nabors Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nabors Industries 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 Nabors Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nabors Industries has no effect on the direction of FDG Electric i.e., FDG Electric and Nabors Industries go up and down completely randomly.
Pair Corralation between FDG Electric and Nabors Industries
If you would invest 7,287 in Nabors Industries on August 29, 2024 and sell it today you would earn a total of 59.00 from holding Nabors Industries or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FDG Electric Vehicles vs. Nabors Industries
Performance |
| Timeline |
| FDG Electric Vehicles |
| Nabors Industries |
FDG Electric and Nabors Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and Nabors Industries
The main advantage of trading using opposite FDG Electric and Nabors Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, Nabors 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 Nabors Industries will offset losses from the drop in Nabors Industries' long position.| FDG Electric vs. BCB Bancorp | FDG Electric vs. Discover Financial Services | FDG Electric vs. Kaltura | FDG Electric vs. NETGEAR |
| Nabors Industries vs. Helmerich and Payne | Nabors Industries vs. Precision Drilling | Nabors Industries vs. Seadrill Limited | Nabors Industries vs. Borr Drilling |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |