Correlation Between Fuse Science and XCPCNL Business

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

By analyzing existing cross correlation between Fuse Science and XCPCNL Business Services, you can compare the effects of market volatilities on Fuse Science and XCPCNL Business 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 Fuse Science with a short position of XCPCNL Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuse Science and XCPCNL Business.

Diversification Opportunities for Fuse Science and XCPCNL Business

-0.08

Correlation Coefficient

Fuse Science  XCPCNL Business

Good diversification

The 3 months correlation between Fuse and XCPCNL is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fuse Science and XCPCNL Business Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XCPCNL Business Services and Fuse Science 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 Fuse Science are associated (or correlated) with XCPCNL Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XCPCNL Business Services has no effect on the direction of Fuse Science i.e., Fuse Science and XCPCNL Business go up and down completely randomly.

Pair Corralation between Fuse Science and XCPCNL Business

Given the investment horizon of 90 days Fuse Science is expected to generate 36.88 times less return on investment than XCPCNL Business. But when comparing it to its historical volatility, Fuse Science is 10.66 times less risky than XCPCNL Business. It trades about 0.05 of its potential returns per unit of risk. XCPCNL Business Services is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  0.01  in XCPCNL Business Services on May 15, 2025 and sell it today you would earn a total of  0.02  from holding XCPCNL Business Services or generate 200.0% return on investment over 90 days.

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

Fuse Science  vs.  XCPCNL Business Services

Fuse Science

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Fuse Science are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fuse Science reported solid returns over the last few months and may actually be approaching a breakup point.

XCPCNL Business Services

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in XCPCNL Business Services are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, XCPCNL Business disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fuse Science and XCPCNL Business

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

The idea behind Fuse Science and XCPCNL Business Services 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.