Correlation Between Seven West and Fastenal

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

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

Diversification Opportunities for Seven West and Fastenal

-0.04

Correlation Coefficient

Seven West  Fastenal

Good diversification

The 3 months correlation between Seven and Fastenal is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Seven West Media and Fastenal Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastenal and Seven West 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 Seven West Media are associated (or correlated) with Fastenal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastenal has no effect on the direction of Seven West i.e., Seven West and Fastenal go up and down completely randomly.

Pair Corralation between Seven West and Fastenal

Assuming the 90 days horizon Seven West Media is expected to under-perform the Fastenal. In addition to that, Seven West is 3.26 times more volatile than Fastenal Company. It trades about 0.0 of its total potential returns per unit of risk. Fastenal Company is currently generating about 0.04 per unit of volatility. If you would invest  3,395  in Fastenal Company on July 13, 2025 and sell it today you would earn a total of  648.00  from holding Fastenal Company or generate 19.09% return on investment over 90 days.

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

Seven West Media  vs.  Fastenal Company

Seven West Media

Risk-Adjusted Performance

Weakest

Over the last 90 days Seven West Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Seven West is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fastenal

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Fastenal Company are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Fastenal may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Seven West and Fastenal

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

The idea behind Seven West Media and Fastenal Company 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.