Correlation Between Safe Pro and Fuel Tech

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

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

Diversification Opportunities for Safe Pro and Fuel Tech

0.93

Correlation Coefficient

Safe Pro  Fuel Tech

Almost no diversification

The 3 months correlation between Safe and Fuel is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Safe Pro Group and Fuel Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuel Tech and Safe Pro 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 Safe Pro Group are associated (or correlated) with Fuel Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuel Tech has no effect on the direction of Safe Pro i.e., Safe Pro and Fuel Tech go up and down completely randomly.

Pair Corralation between Safe Pro and Fuel Tech

Given the investment horizon of 90 days Safe Pro Group is expected to generate 1.49 times more return on investment than Fuel Tech. However, Safe Pro is 1.49 times more volatile than Fuel Tech. It trades about -0.1 of its potential returns per unit of risk. Fuel Tech is currently generating about -0.24 per unit of risk. If you would invest  741.00  in Safe Pro Group on September 13, 2025 and sell it today you would lose (303.00) from holding Safe Pro Group or give up 40.89% of portfolio value over 90 days.

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

Safe Pro Group  vs.  Fuel Tech

Safe Pro Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Safe Pro Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Fuel Tech

Risk-Adjusted Performance

Weakest

Over the last 90 days Fuel Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Safe Pro and Fuel Tech

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

The idea behind Safe Pro Group and Fuel Tech 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.