Correlation Between FEDEX and Under Armour
Specify exactly 2 symbols:
By analyzing existing cross correlation between FEDEX P 45 and Under Armour C, you can compare the effects of market volatilities on FEDEX and Under Armour 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 FEDEX with a short position of Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEDEX and Under Armour.
Diversification Opportunities for FEDEX and Under Armour
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between FEDEX and Under is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding FEDEX P 45 and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C and FEDEX 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 FEDEX P 45 are associated (or correlated) with Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour C has no effect on the direction of FEDEX i.e., FEDEX and Under Armour go up and down completely randomly.
Pair Corralation between FEDEX and Under Armour
Assuming the 90 days trading horizon FEDEX P 45 is expected to under-perform the Under Armour. But the bond apears to be less risky and, when comparing its historical volatility, FEDEX P 45 is 3.5 times less risky than Under Armour. The bond trades about -0.2 of its potential returns per unit of risk. The Under Armour C is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 796.00 in Under Armour C on September 4, 2024 and sell it today you would earn a total of 117.00 from holding Under Armour C or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
FEDEX P 45 vs. Under Armour C
Performance |
| Timeline |
| FEDEX P 45 |
| Under Armour C |
FEDEX and Under Armour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEDEX and Under Armour
The main advantage of trading using opposite FEDEX and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEDEX position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour's long position.The idea behind FEDEX P 45 and Under Armour C 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.| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |