Correlation Between Smallcap Fund and Ffuyux

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

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

Diversification Opportunities for Smallcap Fund and Ffuyux

0.92

Correlation Coefficient

Smallcap Fund  Ffuyux

Almost no diversification

The 3 months correlation between Smallcap and Ffuyux is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Smallcap Fund Fka and Ffuyux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ffuyux and Smallcap Fund 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 Smallcap Fund Fka are associated (or correlated) with Ffuyux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ffuyux has no effect on the direction of Smallcap Fund i.e., Smallcap Fund and Ffuyux go up and down completely randomly.

Pair Corralation between Smallcap Fund and Ffuyux

Assuming the 90 days horizon Smallcap Fund is expected to generate 1.17 times less return on investment than Ffuyux. But when comparing it to its historical volatility, Smallcap Fund Fka is 1.05 times less risky than Ffuyux. It trades about 0.16 of its potential returns per unit of risk. Ffuyux is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,009  in Ffuyux on May 18, 2025 and sell it today you would earn a total of  115.00  from holding Ffuyux or generate 11.4% return on investment over 90 days.

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

Smallcap Fund Fka  vs.  Ffuyux

Smallcap Fund Fka

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Smallcap Fund Fka are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Smallcap Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Ffuyux

Risk-Adjusted Performance

Good

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

Pair Trading with Smallcap Fund and Ffuyux

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

The idea behind Smallcap Fund Fka and Ffuyux 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.