Correlation Between High Performance and FG Merger
Can any of the company-specific risk be diversified away by investing in both High Performance and FG Merger 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 High Performance and FG Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Performance Beverages and FG Merger Corp, you can compare the effects of market volatilities on High Performance and FG Merger 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 High Performance with a short position of FG Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Performance and FG Merger.
Diversification Opportunities for High Performance and FG Merger
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and FGMCW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Performance Beverages and FG Merger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Merger Corp and High Performance 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 High Performance Beverages are associated (or correlated) with FG Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Merger Corp has no effect on the direction of High Performance i.e., High Performance and FG Merger go up and down completely randomly.
Pair Corralation between High Performance and FG Merger
Given the investment horizon of 90 days High Performance Beverages is expected to generate 7.7 times more return on investment than FG Merger. However, High Performance is 7.7 times more volatile than FG Merger Corp. It trades about 0.35 of its potential returns per unit of risk. FG Merger Corp is currently generating about 0.17 per unit of risk. If you would invest 0.00 in High Performance Beverages on September 14, 2024 and sell it today you would earn a total of 0.00 from holding High Performance Beverages or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 15.42% |
| Values | Daily Returns |
High Performance Beverages vs. FG Merger Corp
Performance |
| Timeline |
| High Performance Bev |
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
High Performance and FG Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Performance and FG Merger
The main advantage of trading using opposite High Performance and FG Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Performance position performs unexpectedly, FG Merger 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 FG Merger will offset losses from the drop in FG Merger's long position.| High Performance vs. V Group | High Performance vs. Fbec Worldwide | High Performance vs. Hiru Corporation | High Performance vs. Alkame Holdings |
| FG Merger vs. Monster Beverage Corp | FG Merger vs. Oatly Group AB | FG Merger vs. High Performance Beverages | FG Merger vs. Hurco Companies |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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