Correlation Between Avis Budget and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both Avis Budget and FUYO GENERAL 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 Avis Budget and FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avis Budget Group and FUYO GENERAL LEASE, you can compare the effects of market volatilities on Avis Budget and FUYO GENERAL 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 Avis Budget with a short position of FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avis Budget and FUYO GENERAL.
Diversification Opportunities for Avis Budget and FUYO GENERAL
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avis and FUYO is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Avis Budget Group and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE and Avis Budget 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 Avis Budget Group are associated (or correlated) with FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of Avis Budget i.e., Avis Budget and FUYO GENERAL go up and down completely randomly.
Pair Corralation between Avis Budget and FUYO GENERAL
Assuming the 90 days trading horizon Avis Budget Group is expected to under-perform the FUYO GENERAL. In addition to that, Avis Budget is 2.42 times more volatile than FUYO GENERAL LEASE. It trades about -0.4 of its total potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.07 per unit of volatility. If you would invest 6,850 in FUYO GENERAL LEASE on September 24, 2024 and sell it today you would earn a total of 100.00 from holding FUYO GENERAL LEASE or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avis Budget Group vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| Avis Budget Group |
| FUYO GENERAL LEASE |
Avis Budget and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avis Budget and FUYO GENERAL
The main advantage of trading using opposite Avis Budget and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avis Budget position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| Avis Budget vs. Ashtead Group plc | Avis Budget vs. WillScot Mobile Mini | Avis Budget vs. Sixt SE | Avis Budget vs. ELEMENT FLEET MGMT |
| FUYO GENERAL vs. Ashtead Group plc | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Avis Budget Group | FUYO GENERAL vs. Sixt SE |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |