Correlation Between Kerry and FD Technologies
Can any of the company-specific risk be diversified away by investing in both Kerry and FD Technologies 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 Kerry and FD Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kerry Group and FD Technologies PLC, you can compare the effects of market volatilities on Kerry and FD Technologies 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 Kerry with a short position of FD Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kerry and FD Technologies.
Diversification Opportunities for Kerry and FD Technologies
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kerry and GYQ is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kerry Group and FD Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FD Technologies PLC and Kerry 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 Kerry Group are associated (or correlated) with FD Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FD Technologies PLC has no effect on the direction of Kerry i.e., Kerry and FD Technologies go up and down completely randomly.
Pair Corralation between Kerry and FD Technologies
If you would invest 9,255 in Kerry Group on November 30, 2024 and sell it today you would earn a total of 875.00 from holding Kerry Group or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kerry Group vs. FD Technologies PLC
Performance |
| Timeline |
| Kerry Group |
| FD Technologies PLC |
Kerry and FD Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kerry and FD Technologies
The main advantage of trading using opposite Kerry and FD Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kerry position performs unexpectedly, FD Technologies 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 FD Technologies will offset losses from the drop in FD Technologies' long position.The idea behind Kerry Group and FD Technologies 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.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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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