Correlation Between Fubotv and NFT

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

By analyzing existing cross correlation between Fubotv Inc and NFT Limited, you can compare the effects of market volatilities on Fubotv and NFT 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 Fubotv with a short position of NFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubotv and NFT.

Diversification Opportunities for Fubotv and NFT

-0.08

Correlation Coefficient

Fubotv  NFT

Good diversification

The 3 months correlation between Fubotv and NFT is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fubotv Inc and NFT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFT Limited and Fubotv 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 Fubotv Inc are associated (or correlated) with NFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFT Limited has no effect on the direction of Fubotv i.e., Fubotv and NFT go up and down completely randomly.

Pair Corralation between Fubotv and NFT

Given the investment horizon of 90 days Fubotv is expected to generate 1.68 times less return on investment than NFT. In addition to that, Fubotv is 1.19 times more volatile than NFT Limited. It trades about 0.04 of its total potential returns per unit of risk. NFT Limited is currently generating about 0.08 per unit of volatility. If you would invest  848.00  in NFT Limited on August 7, 2024 and sell it today you would earn a total of  46.00  from holding NFT Limited or generate 5.42% return on investment over 90 days.

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

Fubotv Inc  vs.  NFT Limited

Fubotv Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fubotv Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental drivers, Fubotv displayed solid returns over the last few months and may actually be approaching a breakup point.

NFT Limited

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NFT Limited are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, NFT demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fubotv and NFT

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

The idea behind Fubotv Inc and NFT Limited 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.