Correlation Between Ffuyux and Riversource Series

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

By analyzing existing cross correlation between Ffuyux and Riversource Series Trust, you can compare the effects of market volatilities on Ffuyux and Riversource Series 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 Riversource Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ffuyux and Riversource Series.

Diversification Opportunities for Ffuyux and Riversource Series

0.82

Correlation Coefficient

Ffuyux  Riversource Series

Very poor diversification

The 3 months correlation between Ffuyux and Riversource is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ffuyux and Riversource Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riversource Series Trust 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 Riversource Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riversource Series Trust has no effect on the direction of Ffuyux i.e., Ffuyux and Riversource Series go up and down completely randomly.

Pair Corralation between Ffuyux and Riversource Series

Assuming the 90 days trading horizon Ffuyux is expected to generate 1.13 times more return on investment than Riversource Series. However, Ffuyux is 1.13 times more volatile than Riversource Series Trust. It trades about 0.23 of its potential returns per unit of risk. Riversource Series Trust is currently generating about 0.16 per unit of risk. If you would invest  920.00  in Ffuyux on May 4, 2025 and sell it today you would earn a total of  160.00  from holding Ffuyux or generate 17.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Ffuyux  vs.  Riversource Series Trust

Ffuyux

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ffuyux are ranked lower than 17 (%) 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.

Riversource Series Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Riversource Series Trust are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Riversource Series may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Ffuyux and Riversource Series

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

The idea behind Ffuyux and Riversource Series Trust 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.