Correlation Between FGI Industries and Applied UV
Can any of the company-specific risk be diversified away by investing in both FGI Industries and Applied UV 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 FGI Industries and Applied UV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FGI Industries and Applied UV Preferred, you can compare the effects of market volatilities on FGI Industries and Applied UV 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 FGI Industries with a short position of Applied UV. Check out your portfolio center. Please also check ongoing floating volatility patterns of FGI Industries and Applied UV.
Diversification Opportunities for FGI Industries and Applied UV
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FGI and Applied is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding FGI Industries and Applied UV Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied UV Preferred and FGI Industries 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 FGI Industries are associated (or correlated) with Applied UV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied UV Preferred has no effect on the direction of FGI Industries i.e., FGI Industries and Applied UV go up and down completely randomly.
Pair Corralation between FGI Industries and Applied UV
If you would invest 80.00 in FGI Industries on October 22, 2024 and sell it today you would earn a total of 2.00 from holding FGI Industries or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
FGI Industries vs. Applied UV Preferred
Performance |
| Timeline |
| FGI Industries |
| Applied UV Preferred |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FGI Industries and Applied UV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FGI Industries and Applied UV
The main advantage of trading using opposite FGI Industries and Applied UV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FGI Industries position performs unexpectedly, Applied UV 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 Applied UV will offset losses from the drop in Applied UV's long position.| FGI Industries vs. Fundamental Global | FGI Industries vs. Yoshitsu Co Ltd | FGI Industries vs. Hour Loop | FGI Industries vs. Direct Digital Holdings |
| Applied UV vs. FAT Brands | Applied UV vs. Cadiz Depositary Shares | Applied UV vs. Atlanticus Holdings Corp | Applied UV vs. Presidio Property Trust |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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