Correlation Between Fuse Science and BYND Cannasoft

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

By analyzing existing cross correlation between Fuse Science and BYND Cannasoft Enterprises, you can compare the effects of market volatilities on Fuse Science and BYND Cannasoft 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 Fuse Science with a short position of BYND Cannasoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuse Science and BYND Cannasoft.

Diversification Opportunities for Fuse Science and BYND Cannasoft

0.47

Correlation Coefficient

Fuse Science  BYND Cannasoft

Very weak diversification

The 3 months correlation between Fuse and BYND is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fuse Science and BYND Cannasoft Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYND Cannasoft Enter and Fuse Science 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 Fuse Science are associated (or correlated) with BYND Cannasoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYND Cannasoft Enter has no effect on the direction of Fuse Science i.e., Fuse Science and BYND Cannasoft go up and down completely randomly.

Pair Corralation between Fuse Science and BYND Cannasoft

Given the investment horizon of 90 days Fuse Science is expected to generate 2.22 times more return on investment than BYND Cannasoft. However, Fuse Science is 2.22 times more volatile than BYND Cannasoft Enterprises. It trades about -0.05 of its potential returns per unit of risk. BYND Cannasoft Enterprises is currently generating about -0.53 per unit of risk. If you would invest  0.59  in Fuse Science on October 26, 2024 and sell it today you would lose (0.17) from holding Fuse Science or give up 28.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.74%
Values	Daily Returns

Fuse Science  vs.  BYND Cannasoft Enterprises

Fuse Science

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fuse Science are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fuse Science reported solid returns over the last few months and may actually be approaching a breakup point.

BYND Cannasoft Enter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BYND Cannasoft Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Fuse Science and BYND Cannasoft

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

The idea behind Fuse Science and BYND Cannasoft Enterprises 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.