Correlation Between Fluor and FibroGen
Can any of the company-specific risk be diversified away by investing in both Fluor and FibroGen 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 Fluor and FibroGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluor and FibroGen, you can compare the effects of market volatilities on Fluor and FibroGen 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 Fluor with a short position of FibroGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluor and FibroGen.
Diversification Opportunities for Fluor and FibroGen
Very good diversification
The 3 months correlation between Fluor and FibroGen is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fluor and FibroGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FibroGen and Fluor 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 Fluor are associated (or correlated) with FibroGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FibroGen has no effect on the direction of Fluor i.e., Fluor and FibroGen go up and down completely randomly.
Pair Corralation between Fluor and FibroGen
If you would invest 640.00 in FibroGen on August 29, 2024 and sell it today you would earn a total of 154.00 from holding FibroGen or generate 24.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fluor vs. FibroGen
Performance |
| Timeline |
| Fluor |
| FibroGen |
Fluor and FibroGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluor and FibroGen
The main advantage of trading using opposite Fluor and FibroGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluor position performs unexpectedly, FibroGen 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 FibroGen will offset losses from the drop in FibroGen's long position.| Fluor vs. GMxico Transportes SAB | Fluor vs. Monster Beverage Corp | Fluor vs. DXC Technology | Fluor vs. Grupo Sports World |
| FibroGen vs. Vertex Pharmaceuticals | FibroGen vs. Bristol Myers Squibb | FibroGen vs. The Select Sector | FibroGen vs. Promotora y Operadora |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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