Correlation Between Ffuyux and Ab Large

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Can any of the company-specific risk be diversified away by investing in both Ffuyux and Ab Large 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 Ffuyux and Ab Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ffuyux and Ab Large Cap, you can compare the effects of market volatilities on Ffuyux and Ab Large 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 Ffuyux with a short position of Ab Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ffuyux and Ab Large.

Diversification Opportunities for Ffuyux and Ab Large

-0.86
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Ffuyux and ABPRX is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ffuyux and Ab Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Large Cap and Ffuyux 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 Ffuyux are associated (or correlated) with Ab Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Large Cap has no effect on the direction of Ffuyux i.e., Ffuyux and Ab Large go up and down completely randomly.

Pair Corralation between Ffuyux and Ab Large

If you would invest  896.00  in Ffuyux on April 30, 2025 and sell it today you would earn a total of  231.00  from holding Ffuyux or generate 25.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy6.45%
ValuesDaily Returns

Ffuyux  vs.  Ab Large Cap

 Performance 
       Timeline  
Ffuyux 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ffuyux are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ffuyux showed solid returns over the last few months and may actually be approaching a breakup point.
Ab Large Cap 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Ab Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ab Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ffuyux and Ab Large Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ffuyux and Ab Large

The main advantage of trading using opposite Ffuyux and Ab Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ffuyux position performs unexpectedly, Ab Large 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 Ab Large will offset losses from the drop in Ab Large's long position.
The idea behind Ffuyux and Ab Large Cap 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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