Correlation Between Footway Group and United Parcel
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By analyzing existing cross correlation between Footway Group AB and United Parcel Service, you can compare the effects of market volatilities on Footway Group and United Parcel 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 Footway Group with a short position of United Parcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Footway Group and United Parcel.
Diversification Opportunities for Footway Group and United Parcel
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Footway and United is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Footway Group AB and United Parcel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parcel Service and Footway Group 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 Footway Group AB are associated (or correlated) with United Parcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parcel Service has no effect on the direction of Footway Group i.e., Footway Group and United Parcel go up and down completely randomly.
Pair Corralation between Footway Group and United Parcel
Assuming the 90 days trading horizon Footway Group AB is expected to generate 1.81 times more return on investment than United Parcel. However, Footway Group is 1.81 times more volatile than United Parcel Service. It trades about 0.08 of its potential returns per unit of risk. United Parcel Service is currently generating about 0.01 per unit of risk. If you would invest 3,940 in Footway Group AB on January 24, 2024 and sell it today you would earn a total of 360.00 from holding Footway Group AB or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Footway Group AB vs. United Parcel Service
Performance |
| Timeline |
| Footway Group AB |
| United Parcel Service |
Footway Group and United Parcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Footway Group and United Parcel
The main advantage of trading using opposite Footway Group and United Parcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Footway Group position performs unexpectedly, United Parcel 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 Parcel will offset losses from the drop in United Parcel's long position.| Footway Group vs. Karolinska Development AB | Footway Group vs. Moment Group AB | Footway Group vs. Aegirbio AB | Footway Group vs. Oscar Properties Holding |
| United Parcel vs. JB Hunt Transport | United Parcel vs. Aquagold International | United Parcel vs. Thrivent High Yield | United Parcel vs. Morningstar Unconstrained Allocation |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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