Correlation Between Fuller Thaler and Pcm Fund

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

By analyzing existing cross correlation between Fuller Thaler Behavioral and Pcm Fund, you can compare the effects of market volatilities on Fuller Thaler and Pcm Fund 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 Fuller Thaler with a short position of Pcm Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuller Thaler and Pcm Fund.

Diversification Opportunities for Fuller Thaler and Pcm Fund

0.85

Correlation Coefficient

Fuller Thaler  Pcm Fund

Very poor diversification

The 3 months correlation between Fuller and Pcm is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fuller Thaler Behavioral and Pcm Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pcm Fund and Fuller Thaler 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 Fuller Thaler Behavioral are associated (or correlated) with Pcm Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pcm Fund has no effect on the direction of Fuller Thaler i.e., Fuller Thaler and Pcm Fund go up and down completely randomly.

Pair Corralation between Fuller Thaler and Pcm Fund

Assuming the 90 days horizon Fuller Thaler is expected to generate 1.17 times less return on investment than Pcm Fund. In addition to that, Fuller Thaler is 1.77 times more volatile than Pcm Fund. It trades about 0.13 of its total potential returns per unit of risk. Pcm Fund is currently generating about 0.27 per unit of volatility. If you would invest  619.00  in Pcm Fund on July 7, 2025 and sell it today you would earn a total of  51.00  from holding Pcm Fund or generate 8.24% return on investment over 90 days.

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

Fuller Thaler Behavioral  vs.  Pcm Fund

Fuller Thaler Behavioral

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Fuller Thaler Behavioral are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Fuller Thaler may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pcm Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pcm Fund are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of very inconsistent fundamental indicators, Pcm Fund may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Fuller Thaler and Pcm Fund

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

The idea behind Fuller Thaler Behavioral and Pcm Fund 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.