Correlation Between Workpoint Entertainment and Fine Metal

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

By analyzing existing cross correlation between Workpoint Entertainment Public and Fine Metal Technologies, you can compare the effects of market volatilities on Workpoint Entertainment and Fine Metal 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 Workpoint Entertainment with a short position of Fine Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workpoint Entertainment and Fine Metal.

Diversification Opportunities for Workpoint Entertainment and Fine Metal

-0.58

Correlation Coefficient

Workpoint Entertainment  Fine Metal

Excellent diversification

The 3 months correlation between Workpoint and Fine is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Workpoint Entertainment Public and Fine Metal Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fine Metal Technologies and Workpoint Entertainment 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 Workpoint Entertainment Public are associated (or correlated) with Fine Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fine Metal Technologies has no effect on the direction of Workpoint Entertainment i.e., Workpoint Entertainment and Fine Metal go up and down completely randomly.

Pair Corralation between Workpoint Entertainment and Fine Metal

Assuming the 90 days trading horizon Workpoint Entertainment Public is expected to generate 0.78 times more return on investment than Fine Metal. However, Workpoint Entertainment Public is 1.28 times less risky than Fine Metal. It trades about 0.26 of its potential returns per unit of risk. Fine Metal Technologies is currently generating about 0.17 per unit of risk. If you would invest  394.00  in Workpoint Entertainment Public on April 24, 2025 and sell it today you would earn a total of  24.00  from holding Workpoint Entertainment Public or generate 6.09% return on investment over 90 days.

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

Workpoint Entertainment Public  vs.  Fine Metal Technologies

Workpoint Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Workpoint Entertainment Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Fine Metal Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fine Metal Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Fine Metal may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Workpoint Entertainment and Fine Metal

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

The idea behind Workpoint Entertainment Public and Fine Metal Technologies 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.