Correlation Between Fox Factory and Malibu Boats
Can any of the company-specific risk be diversified away by investing in both Fox Factory and Malibu Boats 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 Fox Factory and Malibu Boats into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fox Factory Holding and Malibu Boats, you can compare the effects of market volatilities on Fox Factory and Malibu Boats 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 Fox Factory with a short position of Malibu Boats. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fox Factory and Malibu Boats.
Diversification Opportunities for Fox Factory and Malibu Boats
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fox and Malibu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fox Factory Holding and Malibu Boats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malibu Boats and Fox Factory 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 Fox Factory Holding are associated (or correlated) with Malibu Boats. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malibu Boats has no effect on the direction of Fox Factory i.e., Fox Factory and Malibu Boats go up and down completely randomly.
Pair Corralation between Fox Factory and Malibu Boats
Given the investment horizon of 90 days Fox Factory Holding is expected to generate 0.98 times more return on investment than Malibu Boats. However, Fox Factory Holding is 1.02 times less risky than Malibu Boats. It trades about -0.23 of its potential returns per unit of risk. Malibu Boats is currently generating about -0.23 per unit of risk. If you would invest 4,782 in Fox Factory Holding on January 19, 2024 and sell it today you would lose (663.00) from holding Fox Factory Holding or give up 13.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fox Factory Holding vs. Malibu Boats
Performance |
| Timeline |
| Fox Factory Holding |
| Malibu Boats |
Fox Factory and Malibu Boats Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fox Factory and Malibu Boats
The main advantage of trading using opposite Fox Factory and Malibu Boats positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fox Factory position performs unexpectedly, Malibu Boats 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 Malibu Boats will offset losses from the drop in Malibu Boats' long position.| Fox Factory vs. Dorman Products | Fox Factory vs. Malibu Boats | Fox Factory vs. Installed Building Products | Fox Factory vs. ExlService Holdings |
| Malibu Boats vs. Thor Industries | Malibu Boats vs. BRP Inc | Malibu Boats vs. Brunswick | Malibu Boats vs. EZGO Technologies |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |