Correlation Between FANDIFI TECHNOLOGY and American Eagle
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and American Eagle 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 FANDIFI TECHNOLOGY and American Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and American Eagle Outfitters, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and American Eagle 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 FANDIFI TECHNOLOGY with a short position of American Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and American Eagle.
Diversification Opportunities for FANDIFI TECHNOLOGY and American Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and American Eagle Outfitters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Eagle Outfitters and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P are associated (or correlated) with American Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Eagle Outfitters has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and American Eagle go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and American Eagle
If you would invest 0.05 in FANDIFI TECHNOLOGY P on August 31, 2024 and sell it today you would earn a total of 0.00 from holding FANDIFI TECHNOLOGY P or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. American Eagle Outfitters
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| American Eagle Outfitters |
FANDIFI TECHNOLOGY and American Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and American Eagle
The main advantage of trading using opposite FANDIFI TECHNOLOGY and American Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, American Eagle 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 American Eagle will offset losses from the drop in American Eagle's long position.| FANDIFI TECHNOLOGY vs. Axcelis Technologies | FANDIFI TECHNOLOGY vs. Lion Biotechnologies | FANDIFI TECHNOLOGY vs. Retail Estates NV | FANDIFI TECHNOLOGY vs. QURATE RETAIL INC |
| American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc | American Eagle vs. Apple Inc |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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