Correlation Between Fulcrum Therapeutics and KIMCO

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

By analyzing existing cross correlation between Fulcrum Therapeutics and KIMCO RLTY P, you can compare the effects of market volatilities on Fulcrum Therapeutics and KIMCO 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 Therapeutics with a short position of KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Therapeutics and KIMCO.

Diversification Opportunities for Fulcrum Therapeutics and KIMCO

-0.49

Correlation Coefficient

Fulcrum Therapeutics  KIMCO

Very good diversification

The 3 months correlation between Fulcrum and KIMCO is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Therapeutics and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P and Fulcrum Therapeutics 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 Therapeutics are associated (or correlated) with KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of Fulcrum Therapeutics i.e., Fulcrum Therapeutics and KIMCO go up and down completely randomly.

Pair Corralation between Fulcrum Therapeutics and KIMCO

Given the investment horizon of 90 days Fulcrum Therapeutics is expected to generate 15.63 times more return on investment than KIMCO. However, Fulcrum Therapeutics is 15.63 times more volatile than KIMCO RLTY P. It trades about 0.01 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about 0.01 per unit of risk. If you would invest  725.00  in Fulcrum Therapeutics on October 7, 2024 and sell it today you would lose (217.00) from holding Fulcrum Therapeutics or give up 29.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	91.53%
Values	Daily Returns

Fulcrum Therapeutics  vs.  KIMCO RLTY P

Fulcrum Therapeutics

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fulcrum Therapeutics are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, Fulcrum Therapeutics exhibited solid returns over the last few months and may actually be approaching a breakup point.

KIMCO RLTY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KIMCO RLTY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, KIMCO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fulcrum Therapeutics and KIMCO

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

The idea behind Fulcrum Therapeutics and KIMCO RLTY P 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.