Correlation Between I3 Verticals and FTI Consulting
Can any of the company-specific risk be diversified away by investing in both I3 Verticals and FTI Consulting 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 I3 Verticals and FTI Consulting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between i3 Verticals and FTI Consulting, you can compare the effects of market volatilities on I3 Verticals and FTI Consulting 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 I3 Verticals with a short position of FTI Consulting. Check out your portfolio center. Please also check ongoing floating volatility patterns of I3 Verticals and FTI Consulting.
Diversification Opportunities for I3 Verticals and FTI Consulting
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IIIV and FTI is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding i3 Verticals and FTI Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTI Consulting and I3 Verticals 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 i3 Verticals are associated (or correlated) with FTI Consulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTI Consulting has no effect on the direction of I3 Verticals i.e., I3 Verticals and FTI Consulting go up and down completely randomly.
Pair Corralation between I3 Verticals and FTI Consulting
Given the investment horizon of 90 days I3 Verticals is expected to generate 1.23 times less return on investment than FTI Consulting. In addition to that, I3 Verticals is 1.18 times more volatile than FTI Consulting. It trades about 0.01 of its total potential returns per unit of risk. FTI Consulting is currently generating about 0.01 per unit of volatility. If you would invest 19,811 in FTI Consulting on August 24, 2024 and sell it today you would earn a total of 375.00 from holding FTI Consulting or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
i3 Verticals vs. FTI Consulting
Performance |
| Timeline |
| i3 Verticals |
| FTI Consulting |
I3 Verticals and FTI Consulting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I3 Verticals and FTI Consulting
The main advantage of trading using opposite I3 Verticals and FTI Consulting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I3 Verticals position performs unexpectedly, FTI Consulting 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 FTI Consulting will offset losses from the drop in FTI Consulting's long position.| I3 Verticals vs. Evertec | I3 Verticals vs. Couchbase | I3 Verticals vs. Flywire Corp | I3 Verticals vs. Euronet Worldwide |
| FTI Consulting vs. CRA International | FTI Consulting vs. Thermon Group Holdings | FTI Consulting vs. Forrester Research | FTI Consulting vs. Forestar Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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