Correlation Between FDG Electric and United Airlines
Can any of the company-specific risk be diversified away by investing in both FDG Electric and United Airlines 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 United Airlines 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 United Airlines Holdings, you can compare the effects of market volatilities on FDG Electric and United Airlines 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 United Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and United Airlines.
Diversification Opportunities for FDG Electric and United Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and United Airlines Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Airlines Holdings 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 United Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Airlines Holdings has no effect on the direction of FDG Electric i.e., FDG Electric and United Airlines go up and down completely randomly.
Pair Corralation between FDG Electric and United Airlines
If you would invest 4,162 in United Airlines Holdings on September 26, 2024 and sell it today you would earn a total of 5,954 from holding United Airlines Holdings or generate 143.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.68% |
Values | Daily Returns |
FDG Electric Vehicles vs. United Airlines Holdings
Performance |
Timeline |
FDG Electric Vehicles |
United Airlines Holdings |
FDG Electric and United Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FDG Electric and United Airlines
The main advantage of trading using opposite FDG Electric and United Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, United Airlines 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 Airlines will offset losses from the drop in United Airlines' long position.FDG Electric vs. BKV Corporation | FDG Electric vs. Republic Bancorp | FDG Electric vs. KKR Co LP | FDG Electric vs. Obayashi |
United Airlines vs. American Airlines Group | United Airlines vs. Southwest Airlines | United Airlines vs. JetBlue Airways Corp | United Airlines vs. Delta Air Lines |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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