Correlation Between 4Imprint Group and Fair Oaks
Can any of the company-specific risk be diversified away by investing in both 4Imprint Group and Fair Oaks 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 4Imprint Group and Fair Oaks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4Imprint Group Plc and Fair Oaks Income, you can compare the effects of market volatilities on 4Imprint Group and Fair Oaks 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 4Imprint Group with a short position of Fair Oaks. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Imprint Group and Fair Oaks.
Diversification Opportunities for 4Imprint Group and Fair Oaks
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between 4Imprint and Fair is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding 4Imprint Group Plc and Fair Oaks Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Oaks Income and 4Imprint Group 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 4Imprint Group Plc are associated (or correlated) with Fair Oaks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Oaks Income has no effect on the direction of 4Imprint Group i.e., 4Imprint Group and Fair Oaks go up and down completely randomly.
Pair Corralation between 4Imprint Group and Fair Oaks
Assuming the 90 days trading horizon 4Imprint Group Plc is expected to generate 1.76 times more return on investment than Fair Oaks. However, 4Imprint Group is 1.76 times more volatile than Fair Oaks Income. It trades about 0.04 of its potential returns per unit of risk. Fair Oaks Income is currently generating about 0.04 per unit of risk. If you would invest 529,491 in 4Imprint Group Plc on November 3, 2024 and sell it today you would earn a total of 73,509 from holding 4Imprint Group Plc or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
4Imprint Group Plc vs. Fair Oaks Income
Performance |
| Timeline |
| 4Imprint Group Plc |
| Fair Oaks Income |
4Imprint Group and Fair Oaks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4Imprint Group and Fair Oaks
The main advantage of trading using opposite 4Imprint Group and Fair Oaks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Imprint Group position performs unexpectedly, Fair Oaks 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 Fair Oaks will offset losses from the drop in Fair Oaks' long position.| 4Imprint Group vs. Qurate Retail Series | 4Imprint Group vs. Power Metal Resources | 4Imprint Group vs. Gaming Realms plc | 4Imprint Group vs. Sovereign Metals |
| Fair Oaks vs. Dalata Hotel Group | Fair Oaks vs. Premier Foods PLC | Fair Oaks vs. Evolution Gaming Group | Fair Oaks vs. MoneysupermarketCom Group PLC |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |