Correlation Between FDG Electric and Ferrari NV
Can any of the company-specific risk be diversified away by investing in both FDG Electric and Ferrari NV 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 Ferrari NV 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 Ferrari NV, you can compare the effects of market volatilities on FDG Electric and Ferrari NV 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 Ferrari NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Ferrari NV.
Diversification Opportunities for FDG Electric and Ferrari NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Ferrari is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and Ferrari NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferrari NV 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 Ferrari NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferrari NV has no effect on the direction of FDG Electric i.e., FDG Electric and Ferrari NV go up and down completely randomly.
Pair Corralation between FDG Electric and Ferrari NV
If you would invest 33,628 in Ferrari NV on August 25, 2024 and sell it today you would earn a total of 10,134 from holding Ferrari NV or generate 30.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FDG Electric Vehicles vs. Ferrari NV
Performance |
| Timeline |
| FDG Electric Vehicles |
| Ferrari NV |
FDG Electric and Ferrari NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and Ferrari NV
The main advantage of trading using opposite FDG Electric and Ferrari NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, Ferrari NV 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 Ferrari NV will offset losses from the drop in Ferrari NV's long position.| FDG Electric vs. Zedge Inc | FDG Electric vs. Radcom | FDG Electric vs. Amkor Technology | FDG Electric vs. Lipocine |
| Ferrari NV vs. Nio Class A | Ferrari NV vs. Rivian Automotive | Ferrari NV vs. Lucid Group | Ferrari NV vs. Tesla Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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