Correlation Between SPORTING and FedEx
Can any of the company-specific risk be diversified away by investing in both SPORTING and FedEx 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 SPORTING and FedEx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPORTING and FedEx, you can compare the effects of market volatilities on SPORTING and FedEx 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 SPORTING with a short position of FedEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPORTING and FedEx.
Diversification Opportunities for SPORTING and FedEx
Average diversification
The 3 months correlation between SPORTING and FedEx is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SPORTING and FedEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedEx and SPORTING 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 SPORTING are associated (or correlated) with FedEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FedEx has no effect on the direction of SPORTING i.e., SPORTING and FedEx go up and down completely randomly.
Pair Corralation between SPORTING and FedEx
If you would invest 25,120 in FedEx on September 1, 2024 and sell it today you would earn a total of 3,520 from holding FedEx or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPORTING vs. FedEx
Performance |
| Timeline |
| SPORTING |
| FedEx |
SPORTING and FedEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPORTING and FedEx
The main advantage of trading using opposite SPORTING and FedEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPORTING position performs unexpectedly, FedEx 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 FedEx will offset losses from the drop in FedEx's long position.| SPORTING vs. SIVERS SEMICONDUCTORS AB | SPORTING vs. Darden Restaurants | SPORTING vs. Reliance Steel Aluminum | SPORTING vs. Q2M Managementberatung AG |
| FedEx vs. Performance Food Group | FedEx vs. Gol Intelligent Airlines | FedEx vs. LIFEWAY FOODS | FedEx vs. Tyson Foods |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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