Correlation Between Fortinet and GB Group
Can any of the company-specific risk be diversified away by investing in both Fortinet and GB 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 Fortinet and GB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and GB Group plc, you can compare the effects of market volatilities on Fortinet and GB 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 Fortinet with a short position of GB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and GB Group.
Diversification Opportunities for Fortinet and GB Group
Poor diversification
The 3 months correlation between Fortinet and 0GB is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and GB Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GB Group plc and Fortinet 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 Fortinet are associated (or correlated) with GB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GB Group plc has no effect on the direction of Fortinet i.e., Fortinet and GB Group go up and down completely randomly.
Pair Corralation between Fortinet and GB Group
Assuming the 90 days horizon Fortinet is expected to generate 1.01 times more return on investment than GB Group. However, Fortinet is 1.01 times more volatile than GB Group plc. It trades about 0.12 of its potential returns per unit of risk. GB Group plc is currently generating about -0.33 per unit of risk. If you would invest 9,156 in Fortinet on October 8, 2024 and sell it today you would earn a total of 242.00 from holding Fortinet or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortinet vs. GB Group plc
Performance |
| Timeline |
| Fortinet |
| GB Group plc |
Fortinet and GB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and GB Group
The main advantage of trading using opposite Fortinet and GB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet position performs unexpectedly, GB 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 GB Group will offset losses from the drop in GB Group's long position.| Fortinet vs. Lifeway Foods | Fortinet vs. Astral Foods Limited | Fortinet vs. Nordic Semiconductor ASA | Fortinet vs. CONAGRA FOODS |
| GB Group vs. Inspire Medical Systems | GB Group vs. SCANDMEDICAL SOLDK 040 | GB Group vs. CompuGroup Medical SE | GB Group vs. 24SEVENOFFICE GROUP AB |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |