Correlation Between Save Foods and FMC

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

By analyzing existing cross correlation between Save Foods and FMC Corporation, you can compare the effects of market volatilities on Save Foods and FMC 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 Save Foods with a short position of FMC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Save Foods and FMC.

Diversification Opportunities for Save Foods and FMC

0.0

Correlation Coefficient

Save Foods  FMC

Pay attention - limited upside

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

Pair Corralation between Save Foods and FMC

If you would invest (100.00) in Save Foods on December 26, 2024 and sell it today you would earn a total of  100.00  from holding Save Foods or generate -100.0% return on investment over 90 days.

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

Save Foods  vs.  FMC Corp.

Save Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Save Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Save Foods is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

FMC Corporation

Risk-Adjusted Performance

Very Weak

Over the last 90 days FMC Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Save Foods and FMC

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

The idea behind Save Foods and FMC Corporation 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.