Correlation Between Infrastrutture Wireless and Fastenal

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

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

Diversification Opportunities for Infrastrutture Wireless and Fastenal

0.57

Correlation Coefficient

Infrastrutture Wireless  Fastenal

Very weak diversification

The 3 months correlation between Infrastrutture and Fastenal is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Infrastrutture Wireless Italia and Fastenal Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastenal and Infrastrutture Wireless 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 Infrastrutture Wireless Italiane 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 Infrastrutture Wireless i.e., Infrastrutture Wireless and Fastenal go up and down completely randomly.

Pair Corralation between Infrastrutture Wireless and Fastenal

Assuming the 90 days horizon Infrastrutture Wireless is expected to generate 2.15 times less return on investment than Fastenal. But when comparing it to its historical volatility, Infrastrutture Wireless Italiane is 1.32 times less risky than Fastenal. It trades about 0.1 of its potential returns per unit of risk. Fastenal Company is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  3,578  in Fastenal Company on May 13, 2025 and sell it today you would earn a total of  475.00  from holding Fastenal Company or generate 13.28% return on investment over 90 days.

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

Infrastrutture Wireless Italia  vs.  Fastenal Company

Infrastrutture Wireless

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Infrastrutture Wireless Italiane are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Infrastrutture Wireless 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

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fastenal Company are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Fastenal may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Infrastrutture Wireless and Fastenal

The main advantage of trading using opposite Infrastrutture Wireless and Fastenal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infrastrutture Wireless 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 Infrastrutture Wireless Italiane 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.