Correlation Between Fastbase and GivBux

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

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

Diversification Opportunities for Fastbase and GivBux

-0.35

Correlation Coefficient

Fastbase  GivBux

Very good diversification

The 3 months correlation between Fastbase and GivBux is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fastbase and GivBux Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GivBux Inc and Fastbase 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 Fastbase are associated (or correlated) with GivBux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GivBux Inc has no effect on the direction of Fastbase i.e., Fastbase and GivBux go up and down completely randomly.

Pair Corralation between Fastbase and GivBux

Given the investment horizon of 90 days Fastbase is expected to generate 1.49 times less return on investment than GivBux. In addition to that, Fastbase is 1.48 times more volatile than GivBux Inc. It trades about 0.08 of its total potential returns per unit of risk. GivBux Inc is currently generating about 0.17 per unit of volatility. If you would invest  118.00  in GivBux Inc on October 27, 2024 and sell it today you would earn a total of  36.00  from holding GivBux Inc or generate 30.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	81.82%
Values	Daily Returns

Fastbase  vs.  GivBux Inc

Fastbase

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fastbase are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Fastbase exhibited solid returns over the last few months and may actually be approaching a breakup point.

GivBux Inc

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GivBux Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, GivBux showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fastbase and GivBux

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

The idea behind Fastbase and GivBux 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.