Correlation Between FactSet Research and EDISON
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By analyzing existing cross correlation between FactSet Research Systems and EDISON INTL 4125, you can compare the effects of market volatilities on FactSet Research and EDISON 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 FactSet Research with a short position of EDISON. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and EDISON.
Diversification Opportunities for FactSet Research and EDISON
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FactSet and EDISON is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and EDISON INTL 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDISON INTL 4125 and FactSet Research 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 FactSet Research Systems are associated (or correlated) with EDISON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDISON INTL 4125 has no effect on the direction of FactSet Research i.e., FactSet Research and EDISON go up and down completely randomly.
Pair Corralation between FactSet Research and EDISON
Considering the 90-day investment horizon FactSet Research Systems is expected to generate 1.53 times more return on investment than EDISON. However, FactSet Research is 1.53 times more volatile than EDISON INTL 4125. It trades about 0.19 of its potential returns per unit of risk. EDISON INTL 4125 is currently generating about -0.05 per unit of risk. If you would invest 42,574 in FactSet Research Systems on September 2, 2024 and sell it today you would earn a total of 6,493 from holding FactSet Research Systems or generate 15.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
FactSet Research Systems vs. EDISON INTL 4125
Performance |
| Timeline |
| FactSet Research Systems |
| EDISON INTL 4125 |
FactSet Research and EDISON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FactSet Research and EDISON
The main advantage of trading using opposite FactSet Research and EDISON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research position performs unexpectedly, EDISON 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 EDISON will offset losses from the drop in EDISON's long position.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
| EDISON vs. AEP TEX INC | EDISON vs. US BANK NATIONAL | EDISON vs. International Business Machines | EDISON vs. Intel |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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