Correlation Between Fortinet and BARCLAYS
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By analyzing existing cross correlation between Fortinet and BARCLAYS PLC, you can compare the effects of market volatilities on Fortinet and BARCLAYS 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 BARCLAYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and BARCLAYS.
Diversification Opportunities for Fortinet and BARCLAYS
Very poor diversification
The 3 months correlation between Fortinet and BARCLAYS is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and BARCLAYS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARCLAYS 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 BARCLAYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARCLAYS PLC has no effect on the direction of Fortinet i.e., Fortinet and BARCLAYS go up and down completely randomly.
Pair Corralation between Fortinet and BARCLAYS
Given the investment horizon of 90 days Fortinet is expected to generate 1.66 times more return on investment than BARCLAYS. However, Fortinet is 1.66 times more volatile than BARCLAYS PLC. It trades about -0.1 of its potential returns per unit of risk. BARCLAYS PLC is currently generating about -0.18 per unit of risk. If you would invest 9,642 in Fortinet on October 24, 2024 and sell it today you would lose (219.00) from holding Fortinet or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 83.33% |
| Values | Daily Returns |
Fortinet vs. BARCLAYS PLC
Performance |
| Timeline |
| Fortinet |
| BARCLAYS PLC |
Fortinet and BARCLAYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and BARCLAYS
The main advantage of trading using opposite Fortinet and BARCLAYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet position performs unexpectedly, BARCLAYS 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 BARCLAYS will offset losses from the drop in BARCLAYS's long position.The idea behind Fortinet and BARCLAYS PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BARCLAYS vs. Albertsons Companies | BARCLAYS vs. Willis Lease Finance | BARCLAYS vs. China Aircraft Leasing | BARCLAYS vs. Willscot Mobile Mini |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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