Correlation Between Fobi AI and BYND Cannasoft

Can any of the company-specific risk be diversified away by investing in both Fobi AI and BYND Cannasoft 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 Fobi AI and BYND Cannasoft into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fobi AI and BYND Cannasoft Enterprises, you can compare the effects of market volatilities on Fobi AI and BYND Cannasoft 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 Fobi AI with a short position of BYND Cannasoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fobi AI and BYND Cannasoft.

Diversification Opportunities for Fobi AI and BYND Cannasoft

-0.09

Correlation Coefficient

Fobi AI  BYND Cannasoft

Good diversification

The 3 months correlation between Fobi and BYND is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fobi AI and BYND Cannasoft Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYND Cannasoft Enter and Fobi AI 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 Fobi AI are associated (or correlated) with BYND Cannasoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYND Cannasoft Enter has no effect on the direction of Fobi AI i.e., Fobi AI and BYND Cannasoft go up and down completely randomly.

Pair Corralation between Fobi AI and BYND Cannasoft

Assuming the 90 days horizon Fobi AI is expected to under-perform the BYND Cannasoft. In addition to that, Fobi AI is 16.38 times more volatile than BYND Cannasoft Enterprises. It trades about -0.02 of its total potential returns per unit of risk. BYND Cannasoft Enterprises is currently generating about -0.01 per unit of volatility. If you would invest  800.00  in BYND Cannasoft Enterprises on September 23, 2024 and sell it today you would lose (10.00) from holding BYND Cannasoft Enterprises or give up 1.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fobi AI  vs.  BYND Cannasoft Enterprises

Fobi AI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fobi AI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BYND Cannasoft Enter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BYND Cannasoft Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, BYND Cannasoft is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Fobi AI and BYND Cannasoft

The main advantage of trading using opposite Fobi AI and BYND Cannasoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fobi AI position performs unexpectedly, BYND Cannasoft 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 BYND Cannasoft will offset losses from the drop in BYND Cannasoft's long position.

The idea behind Fobi AI and BYND Cannasoft Enterprises 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.