Correlation Between BioSig Technologies, and FEC Resources

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

By analyzing existing cross correlation between BioSig Technologies, Common and FEC Resources, you can compare the effects of market volatilities on BioSig Technologies, and FEC Resources 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 BioSig Technologies, with a short position of FEC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioSig Technologies, and FEC Resources.

Diversification Opportunities for BioSig Technologies, and FEC Resources

-0.7

Correlation Coefficient

BioSig Technologies,  FEC Resources

Excellent diversification

The 3 months correlation between BioSig and FEC is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding BioSig Technologies, Common and FEC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEC Resources and BioSig Technologies, 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 BioSig Technologies, Common are associated (or correlated) with FEC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEC Resources has no effect on the direction of BioSig Technologies, i.e., BioSig Technologies, and FEC Resources go up and down completely randomly.

Pair Corralation between BioSig Technologies, and FEC Resources

Given the investment horizon of 90 days BioSig Technologies, Common is expected to under-perform the FEC Resources. In addition to that, BioSig Technologies, is 1.08 times more volatile than FEC Resources. It trades about -0.1 of its total potential returns per unit of risk. FEC Resources is currently generating about 0.15 per unit of volatility. If you would invest  0.21  in FEC Resources on September 24, 2024 and sell it today you would earn a total of  0.06  from holding FEC Resources or generate 28.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

BioSig Technologies, Common  vs.  FEC Resources

BioSig Technologies,

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BioSig Technologies, Common are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, BioSig Technologies, displayed solid returns over the last few months and may actually be approaching a breakup point.

FEC Resources

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FEC Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FEC Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioSig Technologies, and FEC Resources

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

The idea behind BioSig Technologies, Common and FEC Resources 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.

Check out your portfolio center.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.