Correlation Between Xcel Brands and FGI Industries
Can any of the company-specific risk be diversified away by investing in both Xcel Brands and FGI Industries 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 Xcel Brands and FGI Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xcel Brands and FGI Industries, you can compare the effects of market volatilities on Xcel Brands and FGI Industries 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 Xcel Brands with a short position of FGI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xcel Brands and FGI Industries.
Diversification Opportunities for Xcel Brands and FGI Industries
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xcel and FGI is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xcel Brands and FGI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGI Industries and Xcel Brands 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 Xcel Brands are associated (or correlated) with FGI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGI Industries has no effect on the direction of Xcel Brands i.e., Xcel Brands and FGI Industries go up and down completely randomly.
Pair Corralation between Xcel Brands and FGI Industries
Given the investment horizon of 90 days Xcel Brands is expected to under-perform the FGI Industries. But the stock apears to be less risky and, when comparing its historical volatility, Xcel Brands is 1.4 times less risky than FGI Industries. The stock trades about -0.03 of its potential returns per unit of risk. The FGI Industries is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 750.00 in FGI Industries on August 4, 2025 and sell it today you would lose (207.00) from holding FGI Industries or give up 27.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xcel Brands vs. FGI Industries
Performance |
| Timeline |
| Xcel Brands |
| FGI Industries |
Xcel Brands and FGI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xcel Brands and FGI Industries
The main advantage of trading using opposite Xcel Brands and FGI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xcel Brands position performs unexpectedly, FGI Industries 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 FGI Industries will offset losses from the drop in FGI Industries' long position.| Xcel Brands vs. Fly E Group, Common | Xcel Brands vs. Workhorse Group | Xcel Brands vs. Cenntro Electric Group | Xcel Brands vs. Yunji Inc |
| FGI Industries vs. Aterian | FGI Industries vs. Thunder Power Holdings, | FGI Industries vs. Creative Global Technology | FGI Industries vs. Bt Brands |
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.
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