Correlation Between Fuse Science and Smartmetric

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

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

Diversification Opportunities for Fuse Science and Smartmetric

0.0

Correlation Coefficient

Fuse Science  Smartmetric

Pay attention - limited upside

The 3 months correlation between Fuse and Smartmetric is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fuse Science and Smartmetric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartmetric 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 Smartmetric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartmetric has no effect on the direction of Fuse Science i.e., Fuse Science and Smartmetric go up and down completely randomly.

Pair Corralation between Fuse Science and Smartmetric

If you would invest  0.01  in Smartmetric on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Smartmetric or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Fuse Science  vs.  Smartmetric

Fuse Science

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fuse Science has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Smartmetric

Risk-Adjusted Performance

Very Weak

Over the last 90 days Smartmetric has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Smartmetric is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Fuse Science and Smartmetric

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

The idea behind Fuse Science and Smartmetric 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 Transaction History module to view history of all your transactions and understand their impact on performance.