Correlation Between Fenbo Holdings and American Rebel
Can any of the company-specific risk be diversified away by investing in both Fenbo Holdings and American Rebel 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 Fenbo Holdings and American Rebel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fenbo Holdings Limited and American Rebel Holdings, you can compare the effects of market volatilities on Fenbo Holdings and American Rebel 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 Fenbo Holdings with a short position of American Rebel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fenbo Holdings and American Rebel.
Diversification Opportunities for Fenbo Holdings and American Rebel
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fenbo and American is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fenbo Holdings Limited and American Rebel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Rebel Holdings and Fenbo Holdings 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 Fenbo Holdings Limited are associated (or correlated) with American Rebel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Rebel Holdings has no effect on the direction of Fenbo Holdings i.e., Fenbo Holdings and American Rebel go up and down completely randomly.
Pair Corralation between Fenbo Holdings and American Rebel
Given the investment horizon of 90 days Fenbo Holdings Limited is expected to under-perform the American Rebel. In addition to that, Fenbo Holdings is 1.73 times more volatile than American Rebel Holdings. It trades about -0.2 of its total potential returns per unit of risk. American Rebel Holdings is currently generating about -0.24 per unit of volatility. If you would invest 290.00 in American Rebel Holdings on August 31, 2024 and sell it today you would lose (84.00) from holding American Rebel Holdings or give up 28.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fenbo Holdings Limited vs. American Rebel Holdings
Performance |
| Timeline |
| Fenbo Holdings |
| American Rebel Holdings |
Fenbo Holdings and American Rebel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fenbo Holdings and American Rebel
The main advantage of trading using opposite Fenbo Holdings and American Rebel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fenbo Holdings position performs unexpectedly, American Rebel 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 American Rebel will offset losses from the drop in American Rebel's long position.| Fenbo Holdings vs. VOXX International | Fenbo Holdings vs. Vuzix Corp Cmn | Fenbo Holdings vs. Vizio Holding Corp | Fenbo Holdings vs. Wearable Devices |
| American Rebel vs. Renewable Energy and | American Rebel vs. Crocs Inc | American Rebel vs. Deckers Outdoor | American Rebel vs. Nike 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |