Correlation Between Fenbo Holdings and Fossil
Can any of the company-specific risk be diversified away by investing in both Fenbo Holdings and Fossil 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 Fossil 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 Fossil Group, you can compare the effects of market volatilities on Fenbo Holdings and Fossil 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 Fossil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fenbo Holdings and Fossil.
Diversification Opportunities for Fenbo Holdings and Fossil
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fenbo and Fossil is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fenbo Holdings Limited and Fossil Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fossil Group 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 Fossil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fossil Group has no effect on the direction of Fenbo Holdings i.e., Fenbo Holdings and Fossil go up and down completely randomly.
Pair Corralation between Fenbo Holdings and Fossil
Given the investment horizon of 90 days Fenbo Holdings Limited is expected to under-perform the Fossil. In addition to that, Fenbo Holdings is 1.92 times more volatile than Fossil Group. It trades about -0.02 of its total potential returns per unit of risk. Fossil Group is currently generating about 0.04 per unit of volatility. If you would invest 106.00 in Fossil Group on August 27, 2024 and sell it today you would earn a total of 11.00 from holding Fossil Group or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fenbo Holdings Limited vs. Fossil Group
Performance |
| Timeline |
| Fenbo Holdings |
| Fossil Group |
Fenbo Holdings and Fossil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fenbo Holdings and Fossil
The main advantage of trading using opposite Fenbo Holdings and Fossil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fenbo Holdings position performs unexpectedly, Fossil 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 Fossil will offset losses from the drop in Fossil's long position.| Fenbo Holdings vs. KNOT Offshore Partners | Fenbo Holdings vs. Aldel Financial II | Fenbo Holdings vs. Stepstone Group | Fenbo Holdings vs. Tencent Music Entertainment |
| Fossil vs. Lanvin Group Holdings | Fossil vs. Signet Jewelers | Fossil vs. Tapestry | Fossil vs. Capri Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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