Correlation Between Fbjygx and Rational Dividend

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

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

Diversification Opportunities for Fbjygx and Rational Dividend

0.92

Correlation Coefficient

Fbjygx  Rational Dividend

Almost no diversification

The 3 months correlation between Fbjygx and Rational is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fbjygx and Rational Dividend Capture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rational Dividend Capture and Fbjygx 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 Fbjygx are associated (or correlated) with Rational Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rational Dividend Capture has no effect on the direction of Fbjygx i.e., Fbjygx and Rational Dividend go up and down completely randomly.

Pair Corralation between Fbjygx and Rational Dividend

Assuming the 90 days trading horizon Fbjygx is expected to generate 1.68 times less return on investment than Rational Dividend. In addition to that, Fbjygx is 1.27 times more volatile than Rational Dividend Capture. It trades about 0.09 of its total potential returns per unit of risk. Rational Dividend Capture is currently generating about 0.19 per unit of volatility. If you would invest  936.00  in Rational Dividend Capture on May 7, 2025 and sell it today you would earn a total of  68.00  from holding Rational Dividend Capture or generate 7.26% return on investment over 90 days.

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

Fbjygx  vs.  Rational Dividend Capture

Fbjygx

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fbjygx are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking indicators, Fbjygx is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rational Dividend Capture

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rational Dividend Capture are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Rational Dividend may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Fbjygx and Rational Dividend

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

The idea behind Fbjygx and Rational Dividend Capture 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.

Check out your portfolio center.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.