Correlation Between MillerKnoll and FGI Industries
Can any of the company-specific risk be diversified away by investing in both MillerKnoll and FGI Industries 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 MillerKnoll and FGI Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MillerKnoll and FGI Industries, you can compare the effects of market volatilities on MillerKnoll and FGI Industries 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 MillerKnoll with a short position of FGI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of MillerKnoll and FGI Industries.
Diversification Opportunities for MillerKnoll and FGI Industries
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between MillerKnoll and FGI is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MillerKnoll and FGI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGI Industries and MillerKnoll 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 MillerKnoll are associated (or correlated) with FGI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGI Industries has no effect on the direction of MillerKnoll i.e., MillerKnoll and FGI Industries go up and down completely randomly.
Pair Corralation between MillerKnoll and FGI Industries
Given the investment horizon of 90 days MillerKnoll is expected to generate 86.12 times less return on investment than FGI Industries. But when comparing it to its historical volatility, MillerKnoll is 1.95 times less risky than FGI Industries. It trades about 0.0 of its potential returns per unit of risk. FGI Industries is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 77.00 in FGI Industries on October 25, 2024 and sell it today you would earn a total of 7.00 from holding FGI Industries or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MillerKnoll vs. FGI Industries
Performance |
| Timeline |
| MillerKnoll |
| FGI Industries |
MillerKnoll and FGI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MillerKnoll and FGI Industries
The main advantage of trading using opposite MillerKnoll and FGI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MillerKnoll position performs unexpectedly, FGI Industries 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 FGI Industries will offset losses from the drop in FGI Industries' long position.| MillerKnoll vs. Bassett Furniture Industries | MillerKnoll vs. Ethan Allen Interiors | MillerKnoll vs. Natuzzi SpA | MillerKnoll vs. Flexsteel Industries |
| FGI Industries vs. Fundamental Global | FGI Industries vs. Yoshitsu Co Ltd | FGI Industries vs. Hour Loop | FGI Industries vs. Direct Digital Holdings |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |