Correlation Between FEDEX and United Homes
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By analyzing existing cross correlation between FEDEX P 45 and United Homes Group, you can compare the effects of market volatilities on FEDEX and United Homes 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 United Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEDEX and United Homes.
Diversification Opportunities for FEDEX and United Homes
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FEDEX and United is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding FEDEX P 45 and United Homes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Homes Group 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 United Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Homes Group has no effect on the direction of FEDEX i.e., FEDEX and United Homes go up and down completely randomly.
Pair Corralation between FEDEX and United Homes
Assuming the 90 days trading horizon FEDEX P 45 is expected to generate 0.64 times more return on investment than United Homes. However, FEDEX P 45 is 1.55 times less risky than United Homes. It trades about 0.01 of its potential returns per unit of risk. United Homes Group is currently generating about -0.02 per unit of risk. If you would invest 7,669 in FEDEX P 45 on September 2, 2024 and sell it today you would earn a total of 65.00 from holding FEDEX P 45 or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 48.92% |
| Values | Daily Returns |
FEDEX P 45 vs. United Homes Group
Performance |
| Timeline |
| FEDEX P 45 |
| United Homes Group |
FEDEX and United Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEDEX and United Homes
The main advantage of trading using opposite FEDEX and United Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEDEX position performs unexpectedly, United Homes 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 United Homes will offset losses from the drop in United Homes' long position.| FEDEX vs. Cars Inc | FEDEX vs. SEI Investments | FEDEX vs. FDG Electric Vehicles | FEDEX vs. Guangdong Investment Limited |
| United Homes vs. VF Corporation | United Homes vs. Levi Strauss Co | United Homes vs. Columbia Sportswear | United Homes vs. Oxford Industries |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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