Correlation Between FaZe Holdings and Locafy

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

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

Diversification Opportunities for FaZe Holdings and Locafy

0.0

Correlation Coefficient

FaZe Holdings  Locafy

Pay attention - limited upside

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

Pair Corralation between FaZe Holdings and Locafy

If you would invest (100.00) in FaZe Holdings on December 28, 2024 and sell it today you would earn a total of  100.00  from holding FaZe Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

FaZe Holdings  vs.  Locafy

FaZe Holdings

Risk-Adjusted Performance

Very Weak

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

Locafy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Locafy 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 technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with FaZe Holdings and Locafy

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

The idea behind FaZe Holdings and Locafy 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..