Correlation Between Flagstar Financial, and Virgin Group
Can any of the company-specific risk be diversified away by investing in both Flagstar Financial, and Virgin Group 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 Flagstar Financial, and Virgin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flagstar Financial, and Virgin Group Acquisition, you can compare the effects of market volatilities on Flagstar Financial, and Virgin Group 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 Flagstar Financial, with a short position of Virgin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flagstar Financial, and Virgin Group.
Diversification Opportunities for Flagstar Financial, and Virgin Group
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Flagstar and Virgin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Flagstar Financial, and Virgin Group Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virgin Group Acquisition and Flagstar Financial, 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 Flagstar Financial, are associated (or correlated) with Virgin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virgin Group Acquisition has no effect on the direction of Flagstar Financial, i.e., Flagstar Financial, and Virgin Group go up and down completely randomly.
Pair Corralation between Flagstar Financial, and Virgin Group
Considering the 90-day investment horizon Flagstar Financial, is expected to generate 0.34 times more return on investment than Virgin Group. However, Flagstar Financial, is 2.9 times less risky than Virgin Group. It trades about 0.12 of its potential returns per unit of risk. Virgin Group Acquisition is currently generating about 0.01 per unit of risk. If you would invest 905.00 in Flagstar Financial, on October 24, 2024 and sell it today you would earn a total of 39.00 from holding Flagstar Financial, or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flagstar Financial, vs. Virgin Group Acquisition
Performance |
| Timeline |
| Flagstar Financial, |
| Virgin Group Acquisition |
Flagstar Financial, and Virgin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flagstar Financial, and Virgin Group
The main advantage of trading using opposite Flagstar Financial, and Virgin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flagstar Financial, position performs unexpectedly, Virgin Group 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 Virgin Group will offset losses from the drop in Virgin Group's long position.| Flagstar Financial, vs. Coty Inc | Flagstar Financial, vs. Sun Country Airlines | Flagstar Financial, vs. Hooker Furniture | Flagstar Financial, vs. RCI Hospitality Holdings |
| Virgin Group vs. Mannatech Incorporated | Virgin Group vs. Edgewell Personal Care | Virgin Group vs. Inter Parfums | Virgin Group vs. Nu Skin Enterprises |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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