Correlation Between Founder Group and FBS Global

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

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

Diversification Opportunities for Founder Group and FBS Global

-0.18

Correlation Coefficient

Founder Group  FBS Global

Good diversification

The 3 months correlation between Founder and FBS is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Founder Group Limited and FBS Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FBS Global Limited and Founder Group 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 Founder Group Limited are associated (or correlated) with FBS Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FBS Global Limited has no effect on the direction of Founder Group i.e., Founder Group and FBS Global go up and down completely randomly.

Pair Corralation between Founder Group and FBS Global

Considering the 90-day investment horizon Founder Group Limited is expected to generate 1.77 times more return on investment than FBS Global. However, Founder Group is 1.77 times more volatile than FBS Global Limited. It trades about 0.0 of its potential returns per unit of risk. FBS Global Limited is currently generating about -0.17 per unit of risk. If you would invest  46.00  in Founder Group Limited on August 5, 2025 and sell it today you would lose (5.00) from holding Founder Group Limited or give up 10.87% of portfolio value over 90 days.

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

Founder Group Limited  vs.  FBS Global Limited

Founder Group Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Founder Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

FBS Global Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days FBS Global Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, FBS Global is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Founder Group and FBS Global

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

The idea behind Founder Group Limited and FBS Global Limited 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.