Correlation Between Fusion Pharm and Endexx Corp

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

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

Diversification Opportunities for Fusion Pharm and Endexx Corp

0.0

Correlation Coefficient

Fusion Pharm  Endexx Corp

Pay attention - limited upside

The 3 months correlation between Fusion and Endexx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Pharm and Endexx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endexx Corp and Fusion Pharm 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 Fusion Pharm are associated (or correlated) with Endexx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endexx Corp has no effect on the direction of Fusion Pharm i.e., Fusion Pharm and Endexx Corp go up and down completely randomly.

Pair Corralation between Fusion Pharm and Endexx Corp

If you would invest  0.88  in Endexx Corp on December 28, 2024 and sell it today you would lose (0.04) from holding Endexx Corp or give up 4.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fusion Pharm  vs.  Endexx Corp

Fusion Pharm

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fusion Pharm has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Fusion Pharm is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Endexx Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Endexx Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Endexx Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fusion Pharm and Endexx Corp

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

The idea behind Fusion Pharm and Endexx Corp 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.

Check out your portfolio center.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.