Correlation Between Fair Isaac and Caseys General
Can any of the company-specific risk be diversified away by investing in both Fair Isaac and Caseys General 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 Fair Isaac and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fair Isaac Corp and Caseys General Stores, you can compare the effects of market volatilities on Fair Isaac and Caseys General 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 Fair Isaac with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Isaac and Caseys General.
Diversification Opportunities for Fair Isaac and Caseys General
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fair and Caseys is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fair Isaac Corp and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and Fair Isaac 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 Fair Isaac Corp are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Fair Isaac i.e., Fair Isaac and Caseys General go up and down completely randomly.
Pair Corralation between Fair Isaac and Caseys General
Assuming the 90 days trading horizon Fair Isaac Corp is expected to generate 1.26 times more return on investment than Caseys General. However, Fair Isaac is 1.26 times more volatile than Caseys General Stores. It trades about 0.33 of its potential returns per unit of risk. Caseys General Stores is currently generating about 0.18 per unit of risk. If you would invest 185,800 in Fair Isaac Corp on August 31, 2024 and sell it today you would earn a total of 37,700 from holding Fair Isaac Corp or generate 20.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fair Isaac Corp vs. Caseys General Stores
Performance |
| Timeline |
| Fair Isaac Corp |
| Caseys General Stores |
Fair Isaac and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fair Isaac and Caseys General
The main advantage of trading using opposite Fair Isaac and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Isaac position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| Fair Isaac vs. Iridium Communications | Fair Isaac vs. AM EAGLE OUTFITTERS | Fair Isaac vs. Cogent Communications Holdings | Fair Isaac vs. GALENA MINING LTD |
| Caseys General vs. Air New Zealand | Caseys General vs. WIZZ AIR HLDGUNSPADR4 | Caseys General vs. Fair Isaac Corp | Caseys General vs. Ryanair Holdings 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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