Correlation Between Fortress Biotech and Fundamental Global
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech and Fundamental Global 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 Fortress Biotech and Fundamental Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech Pref and Fundamental Global, you can compare the effects of market volatilities on Fortress Biotech and Fundamental Global 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 Fortress Biotech with a short position of Fundamental Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Fundamental Global.
Diversification Opportunities for Fortress Biotech and Fundamental Global
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fortress and Fundamental is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech Pref and Fundamental Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Global and Fortress Biotech 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 Fortress Biotech Pref are associated (or correlated) with Fundamental Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Global has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and Fundamental Global go up and down completely randomly.
Pair Corralation between Fortress Biotech and Fundamental Global
Assuming the 90 days horizon Fortress Biotech Pref is expected to under-perform the Fundamental Global. In addition to that, Fortress Biotech is 1.41 times more volatile than Fundamental Global. It trades about -0.01 of its total potential returns per unit of risk. Fundamental Global is currently generating about 0.02 per unit of volatility. If you would invest 1,630 in Fundamental Global on August 31, 2024 and sell it today you would earn a total of 199.00 from holding Fundamental Global or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fortress Biotech Pref vs. Fundamental Global
Performance |
| Timeline |
| Fortress Biotech Pref |
| Fundamental Global |
Fortress Biotech and Fundamental Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Fundamental Global
The main advantage of trading using opposite Fortress Biotech and Fundamental Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech position performs unexpectedly, Fundamental Global 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 Fundamental Global will offset losses from the drop in Fundamental Global's long position.| Fortress Biotech vs. Absci Corp | Fortress Biotech vs. Larimar Therapeutics | Fortress Biotech vs. InMed Pharmaceuticals | Fortress Biotech vs. Kronos Bio |
| Fundamental Global vs. Arch Capital Group | Fundamental Global vs. The Allstate | Fundamental Global vs. Brighthouse Financial | Fundamental Global vs. Athene Holding |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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