Correlation Between Fair Isaac and 3 E

Can any of the company-specific risk be diversified away by investing in both Fair Isaac and 3 E 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 Fair Isaac and 3 E into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fair Isaac and 3 E Network, you can compare the effects of market volatilities on Fair Isaac and 3 E 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 Fair Isaac with a short position of 3 E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Isaac and 3 E.

Diversification Opportunities for Fair Isaac and 3 E

0.72

Correlation Coefficient

Fair Isaac  3 E

Poor diversification

The 3 months correlation between Fair and MASK is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fair Isaac and 3 E Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3 E Network and Fair Isaac 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 Fair Isaac are associated (or correlated) with 3 E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3 E Network has no effect on the direction of Fair Isaac i.e., Fair Isaac and 3 E go up and down completely randomly.

Pair Corralation between Fair Isaac and 3 E

Given the investment horizon of 90 days Fair Isaac is expected to generate 0.4 times more return on investment than 3 E. However, Fair Isaac is 2.52 times less risky than 3 E. It trades about -0.11 of its potential returns per unit of risk. 3 E Network is currently generating about -0.29 per unit of risk. If you would invest  184,318  in Fair Isaac on July 1, 2025 and sell it today you would lose (32,440) from holding Fair Isaac or give up 17.6% of portfolio value over 90 days.

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

Fair Isaac  vs.  3 E Network

Fair Isaac

Risk-Adjusted Performance

Weakest

Over the last 90 days Fair Isaac has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in October 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

3 E Network

Risk-Adjusted Performance

Weakest

Over the last 90 days 3 E Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in October 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Fair Isaac and 3 E

The main advantage of trading using opposite Fair Isaac and 3 E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Isaac position performs unexpectedly, 3 E 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 3 E will offset losses from the drop in 3 E's long position.

The idea behind Fair Isaac and 3 E Network 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.