Correlation Between Fbec Worldwide and NuVim

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

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

Diversification Opportunities for Fbec Worldwide and NuVim

0.03

Correlation Coefficient

Fbec Worldwide  NuVim

Significant diversification

The 3 months correlation between Fbec and NuVim is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Fbec Worldwide and NuVim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuVim Inc and Fbec Worldwide 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 Fbec Worldwide are associated (or correlated) with NuVim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuVim Inc has no effect on the direction of Fbec Worldwide i.e., Fbec Worldwide and NuVim go up and down completely randomly.

Pair Corralation between Fbec Worldwide and NuVim

Given the investment horizon of 90 days Fbec Worldwide is expected to generate 16.52 times more return on investment than NuVim. However, Fbec Worldwide is 16.52 times more volatile than NuVim Inc. It trades about 0.25 of its potential returns per unit of risk. NuVim Inc is currently generating about 0.11 per unit of risk. If you would invest  0.02  in Fbec Worldwide on December 26, 2024 and sell it today you would earn a total of  0.03  from holding Fbec Worldwide or generate 150.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Fbec Worldwide  vs.  NuVim Inc

Fbec Worldwide

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fbec Worldwide are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Fbec Worldwide exhibited solid returns over the last few months and may actually be approaching a breakup point.

NuVim Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NuVim Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, NuVim displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fbec Worldwide and NuVim

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

The idea behind Fbec Worldwide and NuVim Inc 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.