Correlation Between FDG Electric and Maison Solutions

Can any of the company-specific risk be diversified away by investing in both FDG Electric and Maison Solutions 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 Maison Solutions 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 Maison Solutions, you can compare the effects of market volatilities on FDG Electric and Maison Solutions 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 Maison Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Maison Solutions.

Diversification Opportunities for FDG Electric and Maison Solutions

0.0

Correlation Coefficient

FDG Electric  Maison Solutions

Pay attention - limited upside

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

Pair Corralation between FDG Electric and Maison Solutions

If you would invest  90.00  in Maison Solutions on October 6, 2024 and sell it today you would earn a total of  40.00  from holding Maison Solutions or generate 44.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

FDG Electric Vehicles  vs.  Maison Solutions

FDG Electric Vehicles

Risk-Adjusted Performance

0 of 100

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 recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Maison Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maison Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Maison Solutions is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with FDG Electric and Maison Solutions

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

The idea behind FDG Electric Vehicles and Maison Solutions 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.