Correlation Between Genworth Financial and Fluor

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

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

Diversification Opportunities for Genworth Financial and Fluor

0.0

Correlation Coefficient

Genworth Financial  Fluor

Pay attention - limited upside

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

Pair Corralation between Genworth Financial and Fluor

If you would invest  65,599  in Fluor on September 30, 2024 and sell it today you would earn a total of  32,928  from holding Fluor or generate 50.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Genworth Financial  vs.  Fluor

Genworth Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genworth Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Genworth Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fluor

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fluor are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Fluor may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Genworth Financial and Fluor

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

The idea behind Genworth Financial and Fluor 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.