Correlation Between FaZe Holdings and Onfolio Holdings

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

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

Diversification Opportunities for FaZe Holdings and Onfolio Holdings

0.0

Correlation Coefficient

FaZe Holdings  Onfolio Holdings

Pay attention - limited upside

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

Pair Corralation between FaZe Holdings and Onfolio Holdings

If you would invest (100.00) in FaZe Holdings on December 29, 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.  Onfolio Holdings

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.

Onfolio Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Onfolio Holdings 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 technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with FaZe Holdings and Onfolio Holdings

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

The idea behind FaZe Holdings and Onfolio Holdings 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.