Correlation Between FOX CORP and LGI Homes
Can any of the company-specific risk be diversified away by investing in both FOX CORP and LGI Homes 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 FOX CORP and LGI Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOX P B and LGI Homes, you can compare the effects of market volatilities on FOX CORP and LGI Homes 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 FOX CORP with a short position of LGI Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOX CORP and LGI Homes.
Diversification Opportunities for FOX CORP and LGI Homes
Pay attention - limited upside
The 3 months correlation between FOX and LGI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FOX P B and LGI Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LGI Homes and FOX CORP 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 FOX P B are associated (or correlated) with LGI Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LGI Homes has no effect on the direction of FOX CORP i.e., FOX CORP and LGI Homes go up and down completely randomly.
Pair Corralation between FOX CORP and LGI Homes
If you would invest 8,500 in LGI Homes on September 5, 2024 and sell it today you would earn a total of 1,800 from holding LGI Homes or generate 21.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FOX P B vs. LGI Homes
Performance |
| Timeline |
| FOX CORP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| LGI Homes |
FOX CORP and LGI Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOX CORP and LGI Homes
The main advantage of trading using opposite FOX CORP and LGI Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOX CORP position performs unexpectedly, LGI Homes 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 LGI Homes will offset losses from the drop in LGI Homes' long position.| FOX CORP vs. ePlay Digital | FOX CORP vs. ANTA SPORTS PRODUCT | FOX CORP vs. TRAVEL LEISURE DL 01 | FOX CORP vs. Australian Agricultural |
| LGI Homes vs. BJs Wholesale Club | LGI Homes vs. ADRIATIC METALS LS 013355 | LGI Homes vs. SPARTAN STORES | LGI Homes vs. QURATE RETAIL INC |
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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