Correlation Between Falcons Beyond and Steel Partners

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

By analyzing existing cross correlation between Falcons Beyond Global, and Steel Partners Holdings, you can compare the effects of market volatilities on Falcons Beyond and Steel Partners 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 Falcons Beyond with a short position of Steel Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcons Beyond and Steel Partners.

Diversification Opportunities for Falcons Beyond and Steel Partners

-0.28

Correlation Coefficient

Falcons Beyond  Steel Partners

Very good diversification

The 3 months correlation between Falcons and Steel is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Falcons Beyond Global, and Steel Partners Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Partners Holdings and Falcons Beyond 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 Falcons Beyond Global, are associated (or correlated) with Steel Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Partners Holdings has no effect on the direction of Falcons Beyond i.e., Falcons Beyond and Steel Partners go up and down completely randomly.

Pair Corralation between Falcons Beyond and Steel Partners

If you would invest  653.00  in Falcons Beyond Global, on May 4, 2025 and sell it today you would earn a total of  72.00  from holding Falcons Beyond Global, or generate 11.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	3.17%
Values	Daily Returns

Falcons Beyond Global,  vs.  Steel Partners Holdings

Falcons Beyond Global,

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Falcons Beyond Global, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Falcons Beyond exhibited solid returns over the last few months and may actually be approaching a breakup point.

Steel Partners Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Steel Partners Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Steel Partners is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Falcons Beyond and Steel Partners

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

The idea behind Falcons Beyond Global, and Steel Partners Holdings 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.