Correlation Between Femasys and Starbucks
Can any of the company-specific risk be diversified away by investing in both Femasys and Starbucks 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 Femasys and Starbucks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and Starbucks, you can compare the effects of market volatilities on Femasys and Starbucks 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 Femasys with a short position of Starbucks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Starbucks.
Diversification Opportunities for Femasys and Starbucks
Good diversification
The 3 months correlation between Femasys and Starbucks is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Starbucks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starbucks and Femasys 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 Femasys are associated (or correlated) with Starbucks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starbucks has no effect on the direction of Femasys i.e., Femasys and Starbucks go up and down completely randomly.
Pair Corralation between Femasys and Starbucks
Given the investment horizon of 90 days Femasys is expected to under-perform the Starbucks. In addition to that, Femasys is 3.69 times more volatile than Starbucks. It trades about -0.08 of its total potential returns per unit of risk. Starbucks is currently generating about 0.15 per unit of volatility. If you would invest 9,826 in Starbucks on September 2, 2024 and sell it today you would earn a total of 420.00 from holding Starbucks or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Femasys vs. Starbucks
Performance |
| Timeline |
| Femasys |
| Starbucks |
Femasys and Starbucks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and Starbucks
The main advantage of trading using opposite Femasys and Starbucks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, Starbucks 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 Starbucks will offset losses from the drop in Starbucks' long position.| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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