Correlation Between Qs Us and Fbanjx

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

By analyzing existing cross correlation between Qs Large Cap and Fbanjx, you can compare the effects of market volatilities on Qs Us and Fbanjx 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 Qs Us with a short position of Fbanjx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Us and Fbanjx.

Diversification Opportunities for Qs Us and Fbanjx

0.97

Correlation Coefficient

Qs Us  Fbanjx

Almost no diversification

The 3 months correlation between LMUSX and Fbanjx is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Qs Large Cap and Fbanjx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fbanjx and Qs Us 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 Qs Large Cap are associated (or correlated) with Fbanjx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fbanjx has no effect on the direction of Qs Us i.e., Qs Us and Fbanjx go up and down completely randomly.

Pair Corralation between Qs Us and Fbanjx

Assuming the 90 days horizon Qs Large Cap is expected to generate 1.29 times more return on investment than Fbanjx. However, Qs Us is 1.29 times more volatile than Fbanjx. It trades about 0.25 of its potential returns per unit of risk. Fbanjx is currently generating about 0.18 per unit of risk. If you would invest  2,302  in Qs Large Cap on May 7, 2025 and sell it today you would earn a total of  276.00  from holding Qs Large Cap or generate 11.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Qs Large Cap  vs.  Fbanjx

Qs Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Qs Large Cap are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Qs Us may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Fbanjx

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fbanjx are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fbanjx may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Qs Us and Fbanjx

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

The idea behind Qs Large Cap and Fbanjx 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.