Correlation Between Fastly and 26442CBC7

Can any of the company-specific risk be diversified away by investing in both Fastly and 26442CBC7 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 Fastly and 26442CBC7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fastly Inc and DUK 345 15 APR 51, you can compare the effects of market volatilities on Fastly and 26442CBC7 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 Fastly with a short position of 26442CBC7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastly and 26442CBC7.

Diversification Opportunities for Fastly and 26442CBC7

0.26

Correlation Coefficient

Fastly  26442CBC7

Modest diversification

The 3 months correlation between Fastly and 26442CBC7 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fastly Inc and DUK 345 15 APR 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUK 345 15 and Fastly 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 Fastly Inc are associated (or correlated) with 26442CBC7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUK 345 15 has no effect on the direction of Fastly i.e., Fastly and 26442CBC7 go up and down completely randomly.

Pair Corralation between Fastly and 26442CBC7

Given the investment horizon of 90 days Fastly Inc is expected to under-perform the 26442CBC7. In addition to that, Fastly is 6.01 times more volatile than DUK 345 15 APR 51. It trades about -0.11 of its total potential returns per unit of risk. DUK 345 15 APR 51 is currently generating about 0.08 per unit of volatility. If you would invest  6,928  in DUK 345 15 APR 51 on December 25, 2024 and sell it today you would earn a total of  111.00  from holding DUK 345 15 APR 51 or generate 1.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	45.76%
Values	Daily Returns

Fastly Inc  vs.  DUK 345 15 APR 51

Fastly Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fastly Inc 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 essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

DUK 345 15

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DUK 345 15 APR 51 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 26442CBC7 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fastly and 26442CBC7

The main advantage of trading using opposite Fastly and 26442CBC7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastly position performs unexpectedly, 26442CBC7 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 26442CBC7 will offset losses from the drop in 26442CBC7's long position.

The idea behind Fastly Inc and DUK 345 15 APR 51 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.