Correlation Between Fox Corp and Cal Dive

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

By analyzing existing cross correlation between Fox Corp Class and Cal Dive International, you can compare the effects of market volatilities on Fox Corp and Cal Dive 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 Corp with a short position of Cal Dive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fox Corp and Cal Dive.

Diversification Opportunities for Fox Corp and Cal Dive

0.0

Correlation Coefficient

Fox Corp  Cal Dive

Pay attention - limited upside

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

Pair Corralation between Fox Corp and Cal Dive

If you would invest  4,926  in Fox Corp Class on May 5, 2025 and sell it today you would earn a total of  628.00  from holding Fox Corp Class or generate 12.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fox Corp Class  vs.  Cal Dive International

Fox Corp Class

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fox Corp Class are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Fox Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Cal Dive International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cal Dive International has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Cal Dive is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Fox Corp and Cal Dive

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

The idea behind Fox Corp Class and Cal Dive International 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..