Correlation Between Fitell Ordinary and Build A

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

By analyzing existing cross correlation between Fitell Ordinary and Build A Bear Workshop, you can compare the effects of market volatilities on Fitell Ordinary and Build A 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 Fitell Ordinary with a short position of Build A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitell Ordinary and Build A.

Diversification Opportunities for Fitell Ordinary and Build A

0.15

Correlation Coefficient

Fitell Ordinary  Build A

Average diversification

The 3 months correlation between Fitell and Build is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Fitell Ordinary and Build A Bear Workshop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Build A Bear and Fitell Ordinary 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 Fitell Ordinary are associated (or correlated) with Build A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Build A Bear has no effect on the direction of Fitell Ordinary i.e., Fitell Ordinary and Build A go up and down completely randomly.

Pair Corralation between Fitell Ordinary and Build A

Given the investment horizon of 90 days Fitell Ordinary is expected to generate 267.41 times less return on investment than Build A. In addition to that, Fitell Ordinary is 1.86 times more volatile than Build A Bear Workshop. It trades about 0.0 of its total potential returns per unit of risk. Build A Bear Workshop is currently generating about 0.33 per unit of volatility. If you would invest  3,346  in Build A Bear Workshop on February 20, 2025 and sell it today you would earn a total of  816.00  from holding Build A Bear Workshop or generate 24.39% return on investment over 90 days.

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

Fitell Ordinary  vs.  Build A Bear Workshop

Fitell Ordinary

Risk-Adjusted Performance

Very Weak

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

Build A Bear

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Build A Bear Workshop are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental drivers, Build A may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Fitell Ordinary and Build A

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

The idea behind Fitell Ordinary and Build A Bear Workshop 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..