Correlation Between FedEx and DIVIDEND GROWTH
Can any of the company-specific risk be diversified away by investing in both FedEx and DIVIDEND GROWTH 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 FedEx and DIVIDEND GROWTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FedEx and DIVIDEND GROWTH SPLIT, you can compare the effects of market volatilities on FedEx and DIVIDEND GROWTH 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 FedEx with a short position of DIVIDEND GROWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of FedEx and DIVIDEND GROWTH.
Diversification Opportunities for FedEx and DIVIDEND GROWTH
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FedEx and DIVIDEND is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding FedEx and DIVIDEND GROWTH SPLIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIVIDEND GROWTH SPLIT and FedEx 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 FedEx are associated (or correlated) with DIVIDEND GROWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIVIDEND GROWTH SPLIT has no effect on the direction of FedEx i.e., FedEx and DIVIDEND GROWTH go up and down completely randomly.
Pair Corralation between FedEx and DIVIDEND GROWTH
Assuming the 90 days horizon FedEx is expected to generate 0.54 times more return on investment than DIVIDEND GROWTH. However, FedEx is 1.86 times less risky than DIVIDEND GROWTH. It trades about -0.14 of its potential returns per unit of risk. DIVIDEND GROWTH SPLIT is currently generating about -0.09 per unit of risk. If you would invest 27,195 in FedEx on November 2, 2024 and sell it today you would lose (1,070) from holding FedEx or give up 3.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
FedEx vs. DIVIDEND GROWTH SPLIT
Performance |
Timeline |
FedEx |
DIVIDEND GROWTH SPLIT |
FedEx and DIVIDEND GROWTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FedEx and DIVIDEND GROWTH
The main advantage of trading using opposite FedEx and DIVIDEND GROWTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FedEx position performs unexpectedly, DIVIDEND GROWTH 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 DIVIDEND GROWTH will offset losses from the drop in DIVIDEND GROWTH's long position.FedEx vs. NTT DATA | FedEx vs. TERADATA | FedEx vs. Yuexiu Transport Infrastructure | FedEx vs. TEXAS ROADHOUSE |
DIVIDEND GROWTH vs. Apple Inc | DIVIDEND GROWTH vs. Apple Inc | DIVIDEND GROWTH vs. Apple Inc | DIVIDEND GROWTH vs. Apple 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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