Correlation Between FANH Old and Reliance Global

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

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

Diversification Opportunities for FANH Old and Reliance Global

0.0

Correlation Coefficient

FANH Old  Reliance Global

Pay attention - limited upside

The 3 months correlation between FANH and Reliance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANH Old and Reliance Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliance Global Group and FANH Old 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 FANH Old are associated (or correlated) with Reliance Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliance Global Group has no effect on the direction of FANH Old i.e., FANH Old and Reliance Global go up and down completely randomly.

Pair Corralation between FANH Old and Reliance Global

If you would invest (100.00) in FANH Old on January 9, 2025 and sell it today you would earn a total of  100.00  from holding FANH Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

FANH Old  vs.  Reliance Global Group

FANH Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days FANH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, FANH Old is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Reliance Global Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Reliance Global Group 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 essential indicators remain fairly strong which may send shares a bit higher in May 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with FANH Old and Reliance Global

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

The idea behind FANH Old and Reliance Global Group 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.