Correlation Between Fulcrum Metals and Intuitive Investments

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

By analyzing existing cross correlation between Fulcrum Metals PLC and Intuitive Investments Group, you can compare the effects of market volatilities on Fulcrum Metals and Intuitive Investments 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 Fulcrum Metals with a short position of Intuitive Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Metals and Intuitive Investments.

Diversification Opportunities for Fulcrum Metals and Intuitive Investments

0.84

Correlation Coefficient

Fulcrum Metals  Intuitive Investments

Very poor diversification

The 3 months correlation between Fulcrum and Intuitive is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Metals PLC and Intuitive Investments Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Investments and Fulcrum Metals 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 Fulcrum Metals PLC are associated (or correlated) with Intuitive Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Investments has no effect on the direction of Fulcrum Metals i.e., Fulcrum Metals and Intuitive Investments go up and down completely randomly.

Pair Corralation between Fulcrum Metals and Intuitive Investments

Assuming the 90 days trading horizon Fulcrum Metals PLC is expected to generate 0.72 times more return on investment than Intuitive Investments. However, Fulcrum Metals PLC is 1.39 times less risky than Intuitive Investments. It trades about 0.21 of its potential returns per unit of risk. Intuitive Investments Group is currently generating about -0.16 per unit of risk. If you would invest  750.00  in Fulcrum Metals PLC on September 23, 2024 and sell it today you would earn a total of  25.00  from holding Fulcrum Metals PLC or generate 3.33% return on investment over 90 days.

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

Fulcrum Metals PLC  vs.  Intuitive Investments Group

Fulcrum Metals PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fulcrum Metals PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Intuitive Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intuitive Investments Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Fulcrum Metals and Intuitive Investments

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

The idea behind Fulcrum Metals PLC and Intuitive Investments Group 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.