Correlation Between FibroGen and NOW
Can any of the company-specific risk be diversified away by investing in both FibroGen and NOW 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 FibroGen and NOW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibroGen and NOW Inc, you can compare the effects of market volatilities on FibroGen and NOW 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 FibroGen with a short position of NOW. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibroGen and NOW.
Diversification Opportunities for FibroGen and NOW
Pay attention - limited upside
The 3 months correlation between FibroGen and NOW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FibroGen and NOW Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOW Inc and FibroGen 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 FibroGen are associated (or correlated) with NOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOW Inc has no effect on the direction of FibroGen i.e., FibroGen and NOW go up and down completely randomly.
Pair Corralation between FibroGen and NOW
If you would invest 640.00 in FibroGen on August 30, 2024 and sell it today you would earn a total of 150.00 from holding FibroGen or generate 23.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FibroGen vs. NOW Inc
Performance |
| Timeline |
| FibroGen |
| NOW Inc |
FibroGen and NOW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibroGen and NOW
The main advantage of trading using opposite FibroGen and NOW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibroGen position performs unexpectedly, NOW 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 NOW will offset losses from the drop in NOW's long position.| FibroGen vs. UnitedHealth Group Incorporated | FibroGen vs. Grupo Sports World | FibroGen vs. Taiwan Semiconductor Manufacturing | FibroGen vs. DXC Technology |
| NOW vs. Schlumberger Limited | NOW vs. Bristol Myers Squibb | NOW vs. The Select Sector | NOW vs. Promotora y Operadora |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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