Correlation Between Fair Isaac and British Land

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

By analyzing existing cross correlation between Fair Isaac Corp and British Land Co, you can compare the effects of market volatilities on Fair Isaac and British Land 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 Fair Isaac with a short position of British Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Isaac and British Land.

Diversification Opportunities for Fair Isaac and British Land

-0.02

Correlation Coefficient

Fair Isaac  British Land

Good diversification

The 3 months correlation between Fair and British is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fair Isaac Corp and British Land Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British Land and Fair Isaac 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 Fair Isaac Corp are associated (or correlated) with British Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British Land has no effect on the direction of Fair Isaac i.e., Fair Isaac and British Land go up and down completely randomly.

Pair Corralation between Fair Isaac and British Land

Assuming the 90 days trading horizon Fair Isaac Corp is expected to under-perform the British Land. In addition to that, Fair Isaac is 1.18 times more volatile than British Land Co. It trades about -0.1 of its total potential returns per unit of risk. British Land Co is currently generating about 0.04 per unit of volatility. If you would invest  425.00  in British Land Co on December 21, 2024 and sell it today you would earn a total of  15.00  from holding British Land Co or generate 3.53% return on investment over 90 days.

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

Fair Isaac Corp  vs.  British Land Co

Fair Isaac Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fair Isaac Corp 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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

British Land

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in British Land Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, British Land is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Fair Isaac and British Land

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

The idea behind Fair Isaac Corp and British Land Co 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.