Correlation Between Gannett and F5 Networks
Can any of the company-specific risk be diversified away by investing in both Gannett and F5 Networks 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 Gannett and F5 Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gannett Co and F5 Networks, you can compare the effects of market volatilities on Gannett and F5 Networks 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 Gannett with a short position of F5 Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gannett and F5 Networks.
Diversification Opportunities for Gannett and F5 Networks
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gannett and FFIV is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gannett Co and F5 Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F5 Networks and Gannett 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 Gannett Co are associated (or correlated) with F5 Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F5 Networks has no effect on the direction of Gannett i.e., Gannett and F5 Networks go up and down completely randomly.
Pair Corralation between Gannett and F5 Networks
Considering the 90-day investment horizon Gannett Co is expected to generate 2.38 times more return on investment than F5 Networks. However, Gannett is 2.38 times more volatile than F5 Networks. It trades about 0.22 of its potential returns per unit of risk. F5 Networks is currently generating about -0.05 per unit of risk. If you would invest 211.00 in Gannett Co on January 25, 2024 and sell it today you would earn a total of 61.00 from holding Gannett Co or generate 28.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gannett Co vs. F5 Networks
Performance |
Timeline |
Gannett |
F5 Networks |
Gannett and F5 Networks Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gannett and F5 Networks
The main advantage of trading using opposite Gannett and F5 Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gannett position performs unexpectedly, F5 Networks 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 F5 Networks will offset losses from the drop in F5 Networks' long position.Gannett vs. Dallasnews Corp | Gannett vs. Scholastic | Gannett vs. Pearson PLC ADR | Gannett vs. New York Times |
F5 Networks vs. Sterling Check Corp | F5 Networks vs. Repay Holdings Corp | F5 Networks vs. SPS Commerce | F5 Networks vs. Evertec |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities |