Correlation Between FUYO GENERAL and HACKETT GROUP
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and HACKETT GROUP 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 FUYO GENERAL and HACKETT GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and HACKETT GROUP, you can compare the effects of market volatilities on FUYO GENERAL and HACKETT GROUP 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 FUYO GENERAL with a short position of HACKETT GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and HACKETT GROUP.
Diversification Opportunities for FUYO GENERAL and HACKETT GROUP
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FUYO and HACKETT is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and HACKETT GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HACKETT GROUP and FUYO GENERAL 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 FUYO GENERAL LEASE are associated (or correlated) with HACKETT GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HACKETT GROUP has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and HACKETT GROUP go up and down completely randomly.
Pair Corralation between FUYO GENERAL and HACKETT GROUP
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to under-perform the HACKETT GROUP. But the stock apears to be less risky and, when comparing its historical volatility, FUYO GENERAL LEASE is 1.15 times less risky than HACKETT GROUP. The stock trades about -0.22 of its potential returns per unit of risk. The HACKETT GROUP is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,940 in HACKETT GROUP on October 25, 2024 and sell it today you would lose (20.00) from holding HACKETT GROUP or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. HACKETT GROUP
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| HACKETT GROUP |
FUYO GENERAL and HACKETT GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and HACKETT GROUP
The main advantage of trading using opposite FUYO GENERAL and HACKETT GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, HACKETT GROUP 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 HACKETT GROUP will offset losses from the drop in HACKETT GROUP's long position.| FUYO GENERAL vs. RYU Apparel | FUYO GENERAL vs. Merit Medical Systems | FUYO GENERAL vs. G III Apparel Group | FUYO GENERAL vs. Inspire Medical Systems |
| HACKETT GROUP vs. PICKN PAY STORES | HACKETT GROUP vs. Caseys General Stores | HACKETT GROUP vs. DISTRICT METALS | HACKETT GROUP vs. BJs Wholesale Club |
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 CEOs Directory module to screen CEOs from public companies around the world.
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