Correlation Between Fundamental Global and Maris Tech

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

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

Diversification Opportunities for Fundamental Global and Maris Tech

0.43

Correlation Coefficient

Fundamental Global  Maris Tech

Very weak diversification

The 3 months correlation between Fundamental and Maris is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Global and Maris Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maris Tech and Fundamental Global 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 Fundamental Global are associated (or correlated) with Maris Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maris Tech has no effect on the direction of Fundamental Global i.e., Fundamental Global and Maris Tech go up and down completely randomly.

Pair Corralation between Fundamental Global and Maris Tech

Considering the 90-day investment horizon Fundamental Global is expected to generate 0.82 times more return on investment than Maris Tech. However, Fundamental Global is 1.22 times less risky than Maris Tech. It trades about 0.01 of its potential returns per unit of risk. Maris Tech is currently generating about -0.17 per unit of risk. If you would invest  1,956  in Fundamental Global on December 29, 2024 and sell it today you would lose (113.00) from holding Fundamental Global or give up 5.78% of portfolio value over 90 days.

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

Fundamental Global  vs.  Maris Tech

Fundamental Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fundamental Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Fundamental Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Maris Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maris Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Fundamental Global and Maris Tech

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

The idea behind Fundamental Global and Maris Tech 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..