Correlation Between Fenbo Holdings and Turtle Beach
Can any of the company-specific risk be diversified away by investing in both Fenbo Holdings and Turtle Beach 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 Turtle Beach 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 Turtle Beach Corp, you can compare the effects of market volatilities on Fenbo Holdings and Turtle Beach 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 Turtle Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fenbo Holdings and Turtle Beach.
Diversification Opportunities for Fenbo Holdings and Turtle Beach
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fenbo and Turtle is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fenbo Holdings Limited and Turtle Beach Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turtle Beach Corp 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 Turtle Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turtle Beach Corp has no effect on the direction of Fenbo Holdings i.e., Fenbo Holdings and Turtle Beach go up and down completely randomly.
Pair Corralation between Fenbo Holdings and Turtle Beach
Given the investment horizon of 90 days Fenbo Holdings is expected to generate 1.6 times less return on investment than Turtle Beach. In addition to that, Fenbo Holdings is 2.68 times more volatile than Turtle Beach Corp. It trades about 0.01 of its total potential returns per unit of risk. Turtle Beach Corp is currently generating about 0.05 per unit of volatility. If you would invest 922.00 in Turtle Beach Corp on August 24, 2024 and sell it today you would earn a total of 656.00 from holding Turtle Beach Corp or generate 71.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Fenbo Holdings Limited vs. Turtle Beach Corp
Performance |
| Timeline |
| Fenbo Holdings |
| Turtle Beach Corp |
Fenbo Holdings and Turtle Beach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fenbo Holdings and Turtle Beach
The main advantage of trading using opposite Fenbo Holdings and Turtle Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fenbo Holdings position performs unexpectedly, Turtle Beach 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 Turtle Beach will offset losses from the drop in Turtle Beach's long position.| Fenbo Holdings vs. Origin Materials | Fenbo Holdings vs. Mativ Holdings | Fenbo Holdings vs. Grupo Televisa SAB | Fenbo Holdings vs. Anterix |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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