Correlation Between Weibo Corp and FEDEX
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By analyzing existing cross correlation between Weibo Corp and FEDEX P 405, you can compare the effects of market volatilities on Weibo Corp 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 Weibo Corp with a short position of FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and FEDEX.
Diversification Opportunities for Weibo Corp and FEDEX
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weibo and FEDEX is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and FEDEX P 405 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 405 and Weibo Corp 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 Weibo Corp 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 P 405 has no effect on the direction of Weibo Corp i.e., Weibo Corp and FEDEX go up and down completely randomly.
Pair Corralation between Weibo Corp and FEDEX
Allowing for the 90-day total investment horizon Weibo Corp is expected to under-perform the FEDEX. But the stock apears to be less risky and, when comparing its historical volatility, Weibo Corp is 14.57 times less risky than FEDEX. The stock trades about -0.01 of its potential returns per unit of risk. The FEDEX P 405 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,127 in FEDEX P 405 on September 3, 2024 and sell it today you would earn a total of 172.00 from holding FEDEX P 405 or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.34% |
| Values | Daily Returns |
Weibo Corp vs. FEDEX P 405
Performance |
| Timeline |
| Weibo Corp |
| FEDEX P 405 |
Weibo Corp and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and FEDEX
The main advantage of trading using opposite Weibo Corp and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp 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.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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