Correlation Between FuelPositive Corp and ABB

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

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

Diversification Opportunities for FuelPositive Corp and ABB

-0.09

Correlation Coefficient

FuelPositive Corp  ABB

Good diversification

The 3 months correlation between FuelPositive and ABB is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding FuelPositive Corp and ABB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABB and FuelPositive Corp 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 FuelPositive Corp are associated (or correlated) with ABB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABB has no effect on the direction of FuelPositive Corp i.e., FuelPositive Corp and ABB go up and down completely randomly.

Pair Corralation between FuelPositive Corp and ABB

If you would invest  5,508  in ABB on July 7, 2025 and sell it today you would earn a total of  356.00  from holding ABB or generate 6.46% return on investment over 90 days.

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

FuelPositive Corp  vs.  ABB

FuelPositive Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FuelPositive Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical indicators, FuelPositive Corp reported solid returns over the last few months and may actually be approaching a breakup point.

ABB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ABB are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, ABB showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FuelPositive Corp and ABB

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

The idea behind FuelPositive Corp and ABB 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.