Correlation Between FTI Consulting and Forrester Research
Can any of the company-specific risk be diversified away by investing in both FTI Consulting and Forrester Research 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 FTI Consulting and Forrester Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTI Consulting and Forrester Research, you can compare the effects of market volatilities on FTI Consulting and Forrester Research 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 FTI Consulting with a short position of Forrester Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTI Consulting and Forrester Research.
Diversification Opportunities for FTI Consulting and Forrester Research
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FTI and Forrester is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FTI Consulting and Forrester Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forrester Research and FTI Consulting 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 FTI Consulting are associated (or correlated) with Forrester Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forrester Research has no effect on the direction of FTI Consulting i.e., FTI Consulting and Forrester Research go up and down completely randomly.
Pair Corralation between FTI Consulting and Forrester Research
Considering the 90-day investment horizon FTI Consulting is expected to generate 0.35 times more return on investment than Forrester Research. However, FTI Consulting is 2.88 times less risky than Forrester Research. It trades about 0.08 of its potential returns per unit of risk. Forrester Research is currently generating about -0.03 per unit of risk. If you would invest 16,005 in FTI Consulting on June 7, 2025 and sell it today you would earn a total of 842.00 from holding FTI Consulting or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTI Consulting vs. Forrester Research
Performance |
| Timeline |
| FTI Consulting |
| Forrester Research |
FTI Consulting and Forrester Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTI Consulting and Forrester Research
The main advantage of trading using opposite FTI Consulting and Forrester Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTI Consulting position performs unexpectedly, Forrester Research 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 Forrester Research will offset losses from the drop in Forrester Research's long position.| FTI Consulting vs. Forrester Research | FTI Consulting vs. Huron Consulting Group | FTI Consulting vs. ICF International | FTI Consulting vs. Franklin Covey |
| Forrester Research vs. CRA International | Forrester Research vs. Exponent | Forrester Research vs. Franklin Covey | Forrester Research vs. FTI Consulting |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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