Correlation Between Fastly and Roots Corp
Can any of the company-specific risk be diversified away by investing in both Fastly and Roots Corp 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 Fastly and Roots Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastly Class A and Roots Corp, you can compare the effects of market volatilities on Fastly and Roots Corp 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 Fastly with a short position of Roots Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastly and Roots Corp.
Diversification Opportunities for Fastly and Roots Corp
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fastly and Roots is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fastly Class A and Roots Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roots Corp and Fastly 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 Fastly Class A are associated (or correlated) with Roots Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roots Corp has no effect on the direction of Fastly i.e., Fastly and Roots Corp go up and down completely randomly.
Pair Corralation between Fastly and Roots Corp
Given the investment horizon of 90 days Fastly Class A is expected to generate 5.03 times more return on investment than Roots Corp. However, Fastly is 5.03 times more volatile than Roots Corp. It trades about 0.13 of its potential returns per unit of risk. Roots Corp is currently generating about -0.06 per unit of risk. If you would invest 1,049 in Fastly Class A on November 18, 2025 and sell it today you would earn a total of 777.00 from holding Fastly Class A or generate 74.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Fastly Class A vs. Roots Corp
Performance |
| Timeline |
| Fastly Class A |
| Roots Corp |
Fastly and Roots Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastly and Roots Corp
The main advantage of trading using opposite Fastly and Roots Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastly position performs unexpectedly, Roots Corp 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 Roots Corp will offset losses from the drop in Roots Corp's long position.The idea behind Fastly Class A and Roots Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Roots Corp vs. Reitmans Limited | Roots Corp vs. Reitmans Canada | Roots Corp vs. Transat AT | Roots Corp vs. Supremex |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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