Correlation Between FNSTech and Eugene Investment

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

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

Diversification Opportunities for FNSTech and Eugene Investment

0.68

Correlation Coefficient

FNSTech  Eugene Investment

Poor diversification

The 3 months correlation between FNSTech and Eugene is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding FNSTech Co and Eugene Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Investment and FNSTech 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 FNSTech Co are associated (or correlated) with Eugene Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Investment has no effect on the direction of FNSTech i.e., FNSTech and Eugene Investment go up and down completely randomly.

Pair Corralation between FNSTech and Eugene Investment

Assuming the 90 days trading horizon FNSTech is expected to generate 1.11 times less return on investment than Eugene Investment. But when comparing it to its historical volatility, FNSTech Co is 1.17 times less risky than Eugene Investment. It trades about 0.19 of its potential returns per unit of risk. Eugene Investment Securities is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  262,500  in Eugene Investment Securities on April 25, 2025 and sell it today you would earn a total of  111,500  from holding Eugene Investment Securities or generate 42.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

FNSTech Co  vs.  Eugene Investment Securities

FNSTech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FNSTech Co are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, FNSTech sustained solid returns over the last few months and may actually be approaching a breakup point.

Eugene Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eugene Investment Securities are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Eugene Investment sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FNSTech and Eugene Investment

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

The idea behind FNSTech Co and Eugene Investment Securities 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.