Correlation Between FDG Electric and Dividend

Can any of the company-specific risk be diversified away by investing in both FDG Electric and Dividend 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 FDG Electric and Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FDG Electric Vehicles and Dividend 15 Split, you can compare the effects of market volatilities on FDG Electric and Dividend 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 FDG Electric with a short position of Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Dividend.

Diversification Opportunities for FDG Electric and Dividend

0.0

Correlation Coefficient

FDG Electric  Dividend

Pay attention - limited upside

The 3 months correlation between FDG and Dividend is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split and FDG Electric 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 FDG Electric Vehicles are associated (or correlated) with Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of FDG Electric i.e., FDG Electric and Dividend go up and down completely randomly.

Pair Corralation between FDG Electric and Dividend

If you would invest  338.00  in Dividend 15 Split on December 21, 2024 and sell it today you would earn a total of  36.00  from holding Dividend 15 Split or generate 10.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

FDG Electric Vehicles  vs.  Dividend 15 Split

FDG Electric Vehicles

Risk-Adjusted Performance

Very Weak

Over the last 90 days FDG Electric Vehicles has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, FDG Electric is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Dividend 15 Split

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dividend 15 Split are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, Dividend may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with FDG Electric and Dividend

The main advantage of trading using opposite FDG Electric and Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, Dividend 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 Dividend will offset losses from the drop in Dividend's long position.

The idea behind FDG Electric Vehicles and Dividend 15 Split 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.