Correlation Between Dogness International and Fenbo Holdings
Can any of the company-specific risk be diversified away by investing in both Dogness International and Fenbo Holdings 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 Dogness International and Fenbo Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogness International Corp and Fenbo Holdings Limited, you can compare the effects of market volatilities on Dogness International and Fenbo Holdings 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 Dogness International with a short position of Fenbo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogness International and Fenbo Holdings.
Diversification Opportunities for Dogness International and Fenbo Holdings
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dogness and Fenbo is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dogness International Corp and Fenbo Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fenbo Holdings and Dogness International 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 Dogness International Corp are associated (or correlated) with Fenbo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fenbo Holdings has no effect on the direction of Dogness International i.e., Dogness International and Fenbo Holdings go up and down completely randomly.
Pair Corralation between Dogness International and Fenbo Holdings
Given the investment horizon of 90 days Dogness International Corp is expected to generate 0.96 times more return on investment than Fenbo Holdings. However, Dogness International Corp is 1.04 times less risky than Fenbo Holdings. It trades about 0.06 of its potential returns per unit of risk. Fenbo Holdings Limited is currently generating about 0.02 per unit of risk. If you would invest 1,830 in Dogness International Corp on August 23, 2024 and sell it today you would earn a total of 2,631 from holding Dogness International Corp or generate 143.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 49.8% |
| Values | Daily Returns |
Dogness International Corp vs. Fenbo Holdings Limited
Performance |
| Timeline |
| Dogness International |
| Fenbo Holdings |
Dogness International and Fenbo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dogness International and Fenbo Holdings
The main advantage of trading using opposite Dogness International and Fenbo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogness International position performs unexpectedly, Fenbo Holdings 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 Fenbo Holdings will offset losses from the drop in Fenbo Holdings' long position.| Dogness International vs. Escalade Incorporated | Dogness International vs. JAKKS Pacific | Dogness International vs. Clarus Corp | Dogness International vs. Six Flags Entertainment |
| Fenbo Holdings vs. SFL Corporation | Fenbo Holdings vs. United Guardian | Fenbo Holdings vs. World Houseware Limited | Fenbo Holdings vs. Eldorado Gold Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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