Correlation Between FUTURE GAMING and Fiserv

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

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

Diversification Opportunities for FUTURE GAMING and Fiserv

-0.27

Correlation Coefficient

FUTURE GAMING  Fiserv

Very good diversification

The 3 months correlation between FUTURE and Fiserv is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and Fiserv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiserv Inc and FUTURE GAMING 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 FUTURE GAMING GRP are associated (or correlated) with Fiserv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiserv Inc has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and Fiserv go up and down completely randomly.

Pair Corralation between FUTURE GAMING and Fiserv

Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to generate 1.72 times more return on investment than Fiserv. However, FUTURE GAMING is 1.72 times more volatile than Fiserv Inc. It trades about 0.19 of its potential returns per unit of risk. Fiserv Inc is currently generating about 0.17 per unit of risk. If you would invest  39.00  in FUTURE GAMING GRP on December 4, 2024 and sell it today you would earn a total of  4.00  from holding FUTURE GAMING GRP or generate 10.26% return on investment over 90 days.

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

FUTURE GAMING GRP  vs.  Fiserv Inc

FUTURE GAMING GRP

Risk-Adjusted Performance

Very Weak

Over the last 90 days FUTURE GAMING GRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Fiserv Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fiserv Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Fiserv may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with FUTURE GAMING and Fiserv

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

The idea behind FUTURE GAMING GRP and Fiserv Inc 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.