Correlation Between Escalade Incorporated and FG Group

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

By analyzing existing cross correlation between Escalade Incorporated and FG Group Holdings, you can compare the effects of market volatilities on Escalade Incorporated and FG Group 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 Escalade Incorporated with a short position of FG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Escalade Incorporated and FG Group.

Diversification Opportunities for Escalade Incorporated and FG Group

0.0

Correlation Coefficient

Escalade Incorporated  FG Group

Pay attention - limited upside

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

Pair Corralation between Escalade Incorporated and FG Group

If you would invest  1,425  in Escalade Incorporated on December 19, 2024 and sell it today you would earn a total of  73.00  from holding Escalade Incorporated or generate 5.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Escalade Incorporated  vs.  FG Group Holdings

Escalade Incorporated

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Escalade Incorporated are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, Escalade Incorporated may actually be approaching a critical reversion point that can send shares even higher in April 2025.

FG Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days FG Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, FG Group is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Escalade Incorporated and FG Group

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

The idea behind Escalade Incorporated and FG Group Holdings 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.