Correlation Between Empire State and FEDEX
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By analyzing existing cross correlation between Empire State Realty and FEDEX P, you can compare the effects of market volatilities on Empire State and FEDEX 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 Empire State with a short position of FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and FEDEX.
Diversification Opportunities for Empire State and FEDEX
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Empire and FEDEX is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and FEDEX P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P and Empire State 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 Empire State Realty are associated (or correlated) with FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P has no effect on the direction of Empire State i.e., Empire State and FEDEX go up and down completely randomly.
Pair Corralation between Empire State and FEDEX
Given the investment horizon of 90 days Empire State Realty is expected to generate 2.51 times more return on investment than FEDEX. However, Empire State is 2.51 times more volatile than FEDEX P. It trades about 0.09 of its potential returns per unit of risk. FEDEX P is currently generating about -0.02 per unit of risk. If you would invest 945.00 in Empire State Realty on September 1, 2024 and sell it today you would earn a total of 151.00 from holding Empire State Realty or generate 15.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empire State Realty vs. FEDEX P
Performance |
| Timeline |
| Empire State Realty |
| FEDEX P |
Empire State and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and FEDEX
The main advantage of trading using opposite Empire State and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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