Correlation Between Buckle and Fbc Hldg

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

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

Diversification Opportunities for Buckle and Fbc Hldg

0.3

Correlation Coefficient

Buckle  Fbc Hldg

Weak diversification

The 3 months correlation between Buckle and Fbc is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Buckle Inc and Fbc Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fbc Hldg and Buckle 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 Buckle Inc are associated (or correlated) with Fbc Hldg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fbc Hldg has no effect on the direction of Buckle i.e., Buckle and Fbc Hldg go up and down completely randomly.

Pair Corralation between Buckle and Fbc Hldg

Considering the 90-day investment horizon Buckle Inc is expected to under-perform the Fbc Hldg. But the stock apears to be less risky and, when comparing its historical volatility, Buckle Inc is 77.79 times less risky than Fbc Hldg. The stock trades about -0.19 of its potential returns per unit of risk. The Fbc Hldg is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Fbc Hldg on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Fbc Hldg or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Buckle Inc  vs.  Fbc Hldg

Buckle Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Buckle Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Fbc Hldg

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fbc Hldg are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Fbc Hldg exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Buckle and Fbc Hldg

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

The idea behind Buckle Inc and Fbc Hldg 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.