Correlation Between FARO Technologies and SMUCKER
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By analyzing existing cross correlation between FARO Technologies and SMUCKER J M, you can compare the effects of market volatilities on FARO Technologies and SMUCKER 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 FARO Technologies with a short position of SMUCKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of FARO Technologies and SMUCKER.
Diversification Opportunities for FARO Technologies and SMUCKER
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FARO and SMUCKER is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding FARO Technologies and SMUCKER J M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMUCKER J M and FARO Technologies 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 FARO Technologies are associated (or correlated) with SMUCKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMUCKER J M has no effect on the direction of FARO Technologies i.e., FARO Technologies and SMUCKER go up and down completely randomly.
Pair Corralation between FARO Technologies and SMUCKER
Given the investment horizon of 90 days FARO Technologies is expected to generate 19.84 times more return on investment than SMUCKER. However, FARO Technologies is 19.84 times more volatile than SMUCKER J M. It trades about 0.08 of its potential returns per unit of risk. SMUCKER J M is currently generating about 0.01 per unit of risk. If you would invest 1,824 in FARO Technologies on September 3, 2024 and sell it today you would earn a total of 801.00 from holding FARO Technologies or generate 43.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.63% |
| Values | Daily Returns |
FARO Technologies vs. SMUCKER J M
Performance |
| Timeline |
| FARO Technologies |
| SMUCKER J M |
FARO Technologies and SMUCKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FARO Technologies and SMUCKER
The main advantage of trading using opposite FARO Technologies and SMUCKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FARO Technologies position performs unexpectedly, SMUCKER 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 SMUCKER will offset losses from the drop in SMUCKER's long position.| FARO Technologies vs. Coherent | FARO Technologies vs. ESCO Technologies | FARO Technologies vs. Mesa Laboratories | FARO Technologies vs. Vishay Precision Group |
| SMUCKER vs. Kaltura | SMUCKER vs. United States Steel | SMUCKER vs. FARO Technologies | SMUCKER vs. Uber Technologies |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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