Correlation Between FGI Industries and Traeger
Can any of the company-specific risk be diversified away by investing in both FGI Industries and Traeger 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 Traeger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FGI Industries and Traeger, you can compare the effects of market volatilities on FGI Industries and Traeger 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 Traeger. Check out your portfolio center. Please also check ongoing floating volatility patterns of FGI Industries and Traeger.
Diversification Opportunities for FGI Industries and Traeger
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FGI and Traeger is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding FGI Industries and Traeger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traeger 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 Traeger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traeger has no effect on the direction of FGI Industries i.e., FGI Industries and Traeger go up and down completely randomly.
Pair Corralation between FGI Industries and Traeger
Considering the 90-day investment horizon FGI Industries is expected to generate 1.89 times more return on investment than Traeger. However, FGI Industries is 1.89 times more volatile than Traeger. It trades about 0.06 of its potential returns per unit of risk. Traeger is currently generating about -0.05 per unit of risk. If you would invest 74.00 in FGI Industries on September 2, 2024 and sell it today you would earn a total of 8.00 from holding FGI Industries or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FGI Industries vs. Traeger
Performance |
| Timeline |
| FGI Industries |
| Traeger |
FGI Industries and Traeger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FGI Industries and Traeger
The main advantage of trading using opposite FGI Industries and Traeger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FGI Industries position performs unexpectedly, Traeger 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 Traeger will offset losses from the drop in Traeger'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 |
| Traeger vs. Bassett Furniture Industries | Traeger vs. Ethan Allen Interiors | Traeger vs. Natuzzi SpA | Traeger vs. Flexsteel Industries |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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