Correlation Between Fleetcor Technologies and I3 Verticals

Can any of the company-specific risk be diversified away by investing in both Fleetcor Technologies and I3 Verticals 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 Fleetcor Technologies and I3 Verticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fleetcor Technologies and i3 Verticals, you can compare the effects of market volatilities on Fleetcor Technologies and I3 Verticals 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 Fleetcor Technologies with a short position of I3 Verticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fleetcor Technologies and I3 Verticals.

Diversification Opportunities for Fleetcor Technologies and I3 Verticals

-0.22

Correlation Coefficient

Fleetcor Technologies  I3 Verticals

Very good diversification

The 3 months correlation between Fleetcor and IIIV is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fleetcor Technologies and i3 Verticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i3 Verticals and Fleetcor Technologies 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 Fleetcor Technologies are associated (or correlated) with I3 Verticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i3 Verticals has no effect on the direction of Fleetcor Technologies i.e., Fleetcor Technologies and I3 Verticals go up and down completely randomly.

Pair Corralation between Fleetcor Technologies and I3 Verticals

If you would invest  2,266  in i3 Verticals on August 30, 2024 and sell it today you would earn a total of  220.00  from holding i3 Verticals or generate 9.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Fleetcor Technologies  vs.  i3 Verticals

Fleetcor Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

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

i3 Verticals

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in i3 Verticals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain forward indicators, I3 Verticals may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Fleetcor Technologies and I3 Verticals

The main advantage of trading using opposite Fleetcor Technologies and I3 Verticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fleetcor Technologies position performs unexpectedly, I3 Verticals 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 I3 Verticals will offset losses from the drop in I3 Verticals' long position.

The idea behind Fleetcor Technologies and i3 Verticals 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.