Correlation Between C3 Ai and Fobi AI

Can any of the company-specific risk be diversified away by investing in both C3 Ai and Fobi AI 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 C3 Ai and Fobi AI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C3 Ai Inc and Fobi AI, you can compare the effects of market volatilities on C3 Ai and Fobi AI 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 C3 Ai with a short position of Fobi AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of C3 Ai and Fobi AI.

Diversification Opportunities for C3 Ai and Fobi AI

-0.37

Correlation Coefficient

C3 Ai  Fobi AI

Very good diversification

The 3 months correlation between C3 Ai and Fobi is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding C3 Ai Inc and Fobi AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fobi AI and C3 Ai 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 C3 Ai Inc are associated (or correlated) with Fobi AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fobi AI has no effect on the direction of C3 Ai i.e., C3 Ai and Fobi AI go up and down completely randomly.

Pair Corralation between C3 Ai and Fobi AI

Allowing for the 90-day total investment horizon C3 Ai is expected to generate 81.6 times less return on investment than Fobi AI. But when comparing it to its historical volatility, C3 Ai Inc is 11.77 times less risky than Fobi AI. It trades about 0.03 of its potential returns per unit of risk. Fobi AI is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1.20  in Fobi AI on May 5, 2025 and sell it today you would lose (0.20) from holding Fobi AI or give up 16.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.54%
Values	Daily Returns

C3 Ai Inc  vs.  Fobi AI

C3 Ai Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in C3 Ai Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, C3 Ai may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Fobi AI

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fobi AI are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Fobi AI reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with C3 Ai and Fobi AI

The main advantage of trading using opposite C3 Ai and Fobi AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C3 Ai position performs unexpectedly, Fobi AI 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 Fobi AI will offset losses from the drop in Fobi AI's long position.

The idea behind C3 Ai Inc and Fobi AI 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.