Correlation Between Gap, and Fly E
Can any of the company-specific risk be diversified away by investing in both Gap, and Fly E 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 Gap, and Fly E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Fly E Group, Common, you can compare the effects of market volatilities on Gap, and Fly E 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 Gap, with a short position of Fly E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Fly E.
Diversification Opportunities for Gap, and Fly E
Very good diversification
The 3 months correlation between Gap, and Fly is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Fly E Group, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fly E Group, and Gap, 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 The Gap, are associated (or correlated) with Fly E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fly E Group, has no effect on the direction of Gap, i.e., Gap, and Fly E go up and down completely randomly.
Pair Corralation between Gap, and Fly E
Considering the 90-day investment horizon The Gap, is expected to generate 0.28 times more return on investment than Fly E. However, The Gap, is 3.57 times less risky than Fly E. It trades about -0.01 of its potential returns per unit of risk. Fly E Group, Common is currently generating about -0.1 per unit of risk. If you would invest 2,649 in The Gap, on September 2, 2024 and sell it today you would lose (224.00) from holding The Gap, or give up 8.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
The Gap, vs. Fly E Group, Common
Performance |
| Timeline |
| Gap, |
| Fly E Group, |
Gap, and Fly E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Fly E
The main advantage of trading using opposite Gap, and Fly E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, position performs unexpectedly, Fly E 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 Fly E will offset losses from the drop in Fly E's long position.| Gap, vs. Boot Barn Holdings | Gap, vs. BJs Restaurants | Gap, vs. The Cheesecake Factory | Gap, vs. GEN Restaurant Group, |
| Fly E vs. Celsius Holdings | Fly E vs. Simon Property Group | Fly E vs. Kite Realty Group | Fly E vs. Brandywine Realty Trust |
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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