Correlation Between Fortinet and Currys PLC
Can any of the company-specific risk be diversified away by investing in both Fortinet and Currys PLC 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 Currys PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and Currys PLC, you can compare the effects of market volatilities on Fortinet and Currys PLC 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 Currys PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and Currys PLC.
Diversification Opportunities for Fortinet and Currys PLC
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fortinet and Currys is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and Currys PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Currys 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 Currys PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Currys PLC has no effect on the direction of Fortinet i.e., Fortinet and Currys PLC go up and down completely randomly.
Pair Corralation between Fortinet and Currys PLC
Assuming the 90 days horizon Fortinet is expected to generate 0.81 times more return on investment than Currys PLC. However, Fortinet is 1.24 times less risky than Currys PLC. It trades about 0.13 of its potential returns per unit of risk. Currys PLC is currently generating about 0.02 per unit of risk. If you would invest 9,142 in Fortinet on October 25, 2024 and sell it today you would earn a total of 240.00 from holding Fortinet or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortinet vs. Currys PLC
Performance |
| Timeline |
| Fortinet |
| Currys PLC |
Fortinet and Currys PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and Currys PLC
The main advantage of trading using opposite Fortinet and Currys PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet position performs unexpectedly, Currys PLC 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 Currys PLC will offset losses from the drop in Currys PLC's long position.| Fortinet vs. Firan Technology Group | Fortinet vs. X FAB Silicon Foundries | Fortinet vs. AECOM TECHNOLOGY | Fortinet vs. ANGANG STEEL H |
| Currys PLC vs. PICKN PAY STORES | Currys PLC vs. Burlington Stores | Currys PLC vs. QINGCI GAMES INC | Currys PLC vs. Games Workshop Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |