Correlation Between Fossil and Fenbo Holdings
Can any of the company-specific risk be diversified away by investing in both Fossil and Fenbo Holdings 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 Fossil and Fenbo Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fossil Group and Fenbo Holdings Limited, you can compare the effects of market volatilities on Fossil and Fenbo Holdings 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 Fossil with a short position of Fenbo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fossil and Fenbo Holdings.
Diversification Opportunities for Fossil and Fenbo Holdings
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fossil and Fenbo is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group and Fenbo Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fenbo Holdings and Fossil 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 Fossil Group are associated (or correlated) with Fenbo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fenbo Holdings has no effect on the direction of Fossil i.e., Fossil and Fenbo Holdings go up and down completely randomly.
Pair Corralation between Fossil and Fenbo Holdings
Given the investment horizon of 90 days Fossil Group is expected to under-perform the Fenbo Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Fossil Group is 1.59 times less risky than Fenbo Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The Fenbo Holdings Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 444.00 in Fenbo Holdings Limited on October 20, 2024 and sell it today you would lose (287.00) from holding Fenbo Holdings Limited or give up 64.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.37% |
| Values | Daily Returns |
Fossil Group vs. Fenbo Holdings Limited
Performance |
| Timeline |
| Fossil Group |
| Fenbo Holdings |
Fossil and Fenbo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fossil and Fenbo Holdings
The main advantage of trading using opposite Fossil and Fenbo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fossil position performs unexpectedly, Fenbo Holdings 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 Fenbo Holdings will offset losses from the drop in Fenbo Holdings' long position.| Fossil vs. Lanvin Group Holdings | Fossil vs. Signet Jewelers | Fossil vs. Tapestry | Fossil vs. Capri Holdings |
| Fenbo Holdings vs. Ryanair Holdings PLC | Fenbo Holdings vs. NETGEAR | Fenbo Holdings vs. LATAM Airlines Group | Fenbo Holdings vs. CTS Corporation |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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