Correlation Between FC Investment and Cizzle Biotechnology

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

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

Diversification Opportunities for FC Investment and Cizzle Biotechnology

-0.76

Correlation Coefficient

FC Investment  Cizzle Biotechnology

Pay attention - limited upside

The 3 months correlation between FCIT and Cizzle is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Cizzle Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cizzle Biotechnology and FC Investment 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 FC Investment Trust are associated (or correlated) with Cizzle Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cizzle Biotechnology has no effect on the direction of FC Investment i.e., FC Investment and Cizzle Biotechnology go up and down completely randomly.

Pair Corralation between FC Investment and Cizzle Biotechnology

Assuming the 90 days trading horizon FC Investment Trust is expected to generate 0.22 times more return on investment than Cizzle Biotechnology. However, FC Investment Trust is 4.51 times less risky than Cizzle Biotechnology. It trades about -0.26 of its potential returns per unit of risk. Cizzle Biotechnology Holdings is currently generating about -0.32 per unit of risk. If you would invest  114,200  in FC Investment Trust on October 4, 2024 and sell it today you would lose (3,400) from holding FC Investment Trust or give up 2.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

FC Investment Trust  vs.  Cizzle Biotechnology Holdings

FC Investment Trust

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FC Investment Trust are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, FC Investment may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Cizzle Biotechnology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cizzle Biotechnology 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 rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with FC Investment and Cizzle Biotechnology

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

The idea behind FC Investment Trust and Cizzle Biotechnology 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.