Correlation Between F5 Networks and Fleetcor Technologies
Can any of the company-specific risk be diversified away by investing in both F5 Networks and Fleetcor Technologies 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 F5 Networks and Fleetcor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between F5 Networks and Fleetcor Technologies, you can compare the effects of market volatilities on F5 Networks and Fleetcor Technologies 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 F5 Networks with a short position of Fleetcor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of F5 Networks and Fleetcor Technologies.
Diversification Opportunities for F5 Networks and Fleetcor Technologies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between FFIV and Fleetcor is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding F5 Networks and Fleetcor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fleetcor Technologies and F5 Networks 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 F5 Networks are associated (or correlated) with Fleetcor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fleetcor Technologies has no effect on the direction of F5 Networks i.e., F5 Networks and Fleetcor Technologies go up and down completely randomly.
Pair Corralation between F5 Networks and Fleetcor Technologies
Given the investment horizon of 90 days F5 Networks is expected to generate 0.98 times more return on investment than Fleetcor Technologies. However, F5 Networks is 1.02 times less risky than Fleetcor Technologies. It trades about 0.1 of its potential returns per unit of risk. Fleetcor Technologies is currently generating about 0.07 per unit of risk. If you would invest 16,900 in F5 Networks on August 24, 2024 and sell it today you would earn a total of 7,529 from holding F5 Networks or generate 44.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.2% |
| Values | Daily Returns |
F5 Networks vs. Fleetcor Technologies
Performance |
| Timeline |
| F5 Networks |
| Fleetcor Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
F5 Networks and Fleetcor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with F5 Networks and Fleetcor Technologies
The main advantage of trading using opposite F5 Networks and Fleetcor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F5 Networks position performs unexpectedly, Fleetcor Technologies 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 Fleetcor Technologies will offset losses from the drop in Fleetcor Technologies' long position.| F5 Networks vs. VeriSign | F5 Networks vs. Check Point Software | F5 Networks vs. Qualys Inc | F5 Networks vs. CyberArk Software |
| Fleetcor Technologies vs. Cumulus Media Class | Fleetcor Technologies vs. WEC Energy Group | Fleetcor Technologies vs. CenterPoint Energy | Fleetcor Technologies vs. Vistra Energy Corp |
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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