Correlation Between FGI Industries and Whirlpool
Can any of the company-specific risk be diversified away by investing in both FGI Industries and Whirlpool 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 Whirlpool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FGI Industries Ltd and Whirlpool, you can compare the effects of market volatilities on FGI Industries and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of FGI Industries and Whirlpool.
Diversification Opportunities for FGI Industries and Whirlpool
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FGI and Whirlpool is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding FGI Industries Ltd and Whirlpool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool 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 Ltd are associated (or correlated) with Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool has no effect on the direction of FGI Industries i.e., FGI Industries and Whirlpool go up and down completely randomly.
Pair Corralation between FGI Industries and Whirlpool
Assuming the 90 days horizon FGI Industries Ltd is expected to generate 10.2 times more return on investment than Whirlpool. However, FGI Industries is 10.2 times more volatile than Whirlpool. It trades about 0.09 of its potential returns per unit of risk. Whirlpool is currently generating about 0.05 per unit of risk. If you would invest 11.00 in FGI Industries Ltd on November 2, 2024 and sell it today you would lose (1.00) from holding FGI Industries Ltd or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 22.33% |
| Values | Daily Returns |
FGI Industries Ltd vs. Whirlpool
Performance |
| Timeline |
| FGI Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Whirlpool |
FGI Industries and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FGI Industries and Whirlpool
The main advantage of trading using opposite FGI Industries and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FGI Industries position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| FGI Industries vs. ServiceNow | FGI Industries vs. Steel Partners Holdings | FGI Industries vs. Nippon Steel Corp | FGI Industries vs. ArcelorMittal SA ADR |
| Whirlpool vs. Ethan Allen Interiors | Whirlpool vs. Mohawk Industries | Whirlpool vs. Tempur Sealy International | Whirlpool vs. MillerKnoll |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |