Correlation Between Fortinet and Flint Telecom
Can any of the company-specific risk be diversified away by investing in both Fortinet and Flint Telecom 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 Flint Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and Flint Telecom Group, you can compare the effects of market volatilities on Fortinet and Flint Telecom 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 Flint Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and Flint Telecom.
Diversification Opportunities for Fortinet and Flint Telecom
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fortinet and Flint is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and Flint Telecom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flint Telecom Group 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 Flint Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flint Telecom Group has no effect on the direction of Fortinet i.e., Fortinet and Flint Telecom go up and down completely randomly.
Pair Corralation between Fortinet and Flint Telecom
Given the investment horizon of 90 days Fortinet is expected to generate 0.33 times more return on investment than Flint Telecom. However, Fortinet is 3.05 times less risky than Flint Telecom. It trades about 0.11 of its potential returns per unit of risk. Flint Telecom Group is currently generating about -0.01 per unit of risk. If you would invest 5,364 in Fortinet on September 4, 2024 and sell it today you would earn a total of 4,165 from holding Fortinet or generate 77.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortinet vs. Flint Telecom Group
Performance |
| Timeline |
| Fortinet |
| Flint Telecom Group |
Fortinet and Flint Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and Flint Telecom
The main advantage of trading using opposite Fortinet and Flint Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet position performs unexpectedly, Flint Telecom 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 Flint Telecom will offset losses from the drop in Flint Telecom's long position.| Fortinet vs. Palo Alto Networks | Fortinet vs. Uipath Inc | Fortinet vs. Block Inc | Fortinet vs. Adobe Systems Incorporated |
| Flint Telecom vs. Castellum | Flint Telecom vs. Datametrex AI Limited | Flint Telecom vs. TTEC Holdings | Flint Telecom vs. CLPS 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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