Correlation Between FactSet Research and 49326EEN9

Can any of the company-specific risk be diversified away by investing in both FactSet Research and 49326EEN9 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 FactSet Research and 49326EEN9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FactSet Research Systems and KEY 4789 01 JUN 33, you can compare the effects of market volatilities on FactSet Research and 49326EEN9 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 FactSet Research with a short position of 49326EEN9. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and 49326EEN9.

Diversification Opportunities for FactSet Research and 49326EEN9

-0.44

Correlation Coefficient

FactSet Research  49326EEN9

Very good diversification

The 3 months correlation between FactSet and 49326EEN9 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and KEY 4789 01 JUN 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEY 4789 01 and FactSet Research 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 FactSet Research Systems are associated (or correlated) with 49326EEN9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEY 4789 01 has no effect on the direction of FactSet Research i.e., FactSet Research and 49326EEN9 go up and down completely randomly.

Pair Corralation between FactSet Research and 49326EEN9

Considering the 90-day investment horizon FactSet Research Systems is expected to under-perform the 49326EEN9. But the stock apears to be less risky and, when comparing its historical volatility, FactSet Research Systems is 1.33 times less risky than 49326EEN9. The stock trades about -0.2 of its potential returns per unit of risk. The KEY 4789 01 JUN 33 is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  9,494  in KEY 4789 01 JUN 33 on December 25, 2024 and sell it today you would lose (881.00) from holding KEY 4789 01 JUN 33 or give up 9.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

FactSet Research Systems  vs.  KEY 4789 01 JUN 33

FactSet Research Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days FactSet Research Systems 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 fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

KEY 4789 01

Risk-Adjusted Performance

Very Weak

Over the last 90 days KEY 4789 01 JUN 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KEY 4789 01 JUN 33 investors.

Pair Trading with FactSet Research and 49326EEN9

The main advantage of trading using opposite FactSet Research and 49326EEN9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research position performs unexpectedly, 49326EEN9 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 49326EEN9 will offset losses from the drop in 49326EEN9's long position.

The idea behind FactSet Research Systems and KEY 4789 01 JUN 33 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.