Correlation Between Focus Universal and Know Labs
Can any of the company-specific risk be diversified away by investing in both Focus Universal and Know Labs 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 Focus Universal and Know Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Universal and Know Labs, you can compare the effects of market volatilities on Focus Universal and Know Labs 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 Focus Universal with a short position of Know Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Universal and Know Labs.
Diversification Opportunities for Focus Universal and Know Labs
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Focus and Know is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Focus Universal and Know Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Know Labs and Focus Universal 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 Focus Universal are associated (or correlated) with Know Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Know Labs has no effect on the direction of Focus Universal i.e., Focus Universal and Know Labs go up and down completely randomly.
Pair Corralation between Focus Universal and Know Labs
Given the investment horizon of 90 days Focus Universal is expected to under-perform the Know Labs. In addition to that, Focus Universal is 1.01 times more volatile than Know Labs. It trades about -0.06 of its total potential returns per unit of risk. Know Labs is currently generating about 0.03 per unit of volatility. If you would invest 26.00 in Know Labs on August 25, 2024 and sell it today you would lose (1.00) from holding Know Labs or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Universal vs. Know Labs
Performance |
| Timeline |
| Focus Universal |
| Know Labs |
Focus Universal and Know Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Universal and Know Labs
The main advantage of trading using opposite Focus Universal and Know Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Universal position performs unexpectedly, Know Labs 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 Know Labs will offset losses from the drop in Know Labs' long position.| Focus Universal vs. ESCO Technologies | Focus Universal vs. Genasys | Focus Universal vs. Cepton Inc | Focus Universal vs. Darkpulse |
| Know Labs vs. Focus Universal | Know Labs vs. ESCO Technologies | Know Labs vs. Genasys | Know Labs vs. Cepton Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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