Correlation Between Fbanjx and Pender Real

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

By analyzing existing cross correlation between Fbanjx and Pender Real Estate, you can compare the effects of market volatilities on Fbanjx and Pender Real 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 Fbanjx with a short position of Pender Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fbanjx and Pender Real.

Diversification Opportunities for Fbanjx and Pender Real

0.93

Correlation Coefficient

Fbanjx  Pender Real

Almost no diversification

The 3 months correlation between Fbanjx and Pender is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fbanjx and Pender Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pender Real Estate and Fbanjx 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 Fbanjx are associated (or correlated) with Pender Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pender Real Estate has no effect on the direction of Fbanjx i.e., Fbanjx and Pender Real go up and down completely randomly.

Pair Corralation between Fbanjx and Pender Real

Assuming the 90 days trading horizon Fbanjx is expected to generate 1.96 times less return on investment than Pender Real. In addition to that, Fbanjx is 13.52 times more volatile than Pender Real Estate. It trades about 0.01 of its total potential returns per unit of risk. Pender Real Estate is currently generating about 0.3 per unit of volatility. If you would invest  974.00  in Pender Real Estate on May 7, 2025 and sell it today you would earn a total of  30.00  from holding Pender Real Estate or generate 3.08% return on investment over 90 days.

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

Fbanjx  vs.  Pender Real Estate

Fbanjx

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fbanjx are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fbanjx may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pender Real Estate

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pender Real Estate are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Pender Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fbanjx and Pender Real

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

The idea behind Fbanjx and Pender Real Estate 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 Global Correlations module to find global opportunities by holding instruments from different markets.