Correlation Between Fuse Science and Looking Glass
Can any of the company-specific risk be diversified away by investing in both Fuse Science and Looking Glass 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 Looking Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuse Science and Looking Glass Labs, you can compare the effects of market volatilities on Fuse Science and Looking Glass 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 Looking Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuse Science and Looking Glass.
Diversification Opportunities for Fuse Science and Looking Glass
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fuse and Looking is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fuse Science and Looking Glass Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Looking Glass Labs 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 Looking Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Looking Glass Labs has no effect on the direction of Fuse Science i.e., Fuse Science and Looking Glass go up and down completely randomly.
Pair Corralation between Fuse Science and Looking Glass
If you would invest 0.49 in Fuse Science on September 15, 2024 and sell it today you would earn a total of 0.01 from holding Fuse Science or generate 2.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 1.56% |
Values | Daily Returns |
Fuse Science vs. Looking Glass Labs
Performance |
Timeline |
Fuse Science |
Looking Glass Labs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fuse Science and Looking Glass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fuse Science and Looking Glass
The main advantage of trading using opposite Fuse Science and Looking Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuse Science position performs unexpectedly, Looking Glass 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 Looking Glass will offset losses from the drop in Looking Glass' long position.Fuse Science vs. Salesforce | Fuse Science vs. SAP SE ADR | Fuse Science vs. ServiceNow | Fuse Science vs. Intuit Inc |
Looking Glass vs. Fuse Science | Looking Glass vs. Data Call Technologi | Looking Glass vs. Rightscorp | Looking Glass vs. Alarum Technologies |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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