Correlation Between FG Group and Escalade Incorporated
Can any of the company-specific risk be diversified away by investing in both FG Group and Escalade Incorporated 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 FG Group and Escalade Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FG Group Holdings and Escalade Incorporated, you can compare the effects of market volatilities on FG Group and Escalade Incorporated 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 FG Group with a short position of Escalade Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Group and Escalade Incorporated.
Diversification Opportunities for FG Group and Escalade Incorporated
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FGH and Escalade is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FG Group Holdings and Escalade Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escalade Incorporated and FG Group 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 FG Group Holdings are associated (or correlated) with Escalade Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escalade Incorporated has no effect on the direction of FG Group i.e., FG Group and Escalade Incorporated go up and down completely randomly.
Pair Corralation between FG Group and Escalade Incorporated
If you would invest (100.00) in FG Group Holdings on November 27, 2024 and sell it today you would earn a total of 100.00 from holding FG Group Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FG Group Holdings vs. Escalade Incorporated
Performance |
| Timeline |
| FG Group Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Escalade Incorporated |
FG Group and Escalade Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Group and Escalade Incorporated
The main advantage of trading using opposite FG Group and Escalade Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Group position performs unexpectedly, Escalade Incorporated 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 Escalade Incorporated will offset losses from the drop in Escalade Incorporated's long position.| FG Group vs. OneSpaWorld Holdings | FG Group vs. Games Workshop Group | FG Group vs. Johnson Outdoors | FG Group vs. American Outdoor Brands |
| Escalade Incorporated vs. Johnson Outdoors | Escalade Incorporated vs. First Business Financial | Escalade Incorporated vs. Flexsteel Industries | Escalade Incorporated vs. Superior Uniform Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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