Correlation Between B Communications and FBS Global
Can any of the company-specific risk be diversified away by investing in both B Communications and FBS Global 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 B Communications and FBS Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B Communications and FBS Global Limited, you can compare the effects of market volatilities on B Communications and FBS Global 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 B Communications with a short position of FBS Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Communications and FBS Global.
Diversification Opportunities for B Communications and FBS Global
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BCOMF and FBS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding B Communications and FBS Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FBS Global Limited and B Communications 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 B Communications are associated (or correlated) with FBS Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FBS Global Limited has no effect on the direction of B Communications i.e., B Communications and FBS Global go up and down completely randomly.
Pair Corralation between B Communications and FBS Global
Assuming the 90 days horizon B Communications is expected to generate 4.72 times less return on investment than FBS Global. But when comparing it to its historical volatility, B Communications is 5.52 times less risky than FBS Global. It trades about 0.14 of its potential returns per unit of risk. FBS Global Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 54.00 in FBS Global Limited on September 7, 2025 and sell it today you would earn a total of 23.00 from holding FBS Global Limited or generate 42.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
B Communications vs. FBS Global Limited
Performance |
| Timeline |
| B Communications |
| FBS Global Limited |
B Communications and FBS Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B Communications and FBS Global
The main advantage of trading using opposite B Communications and FBS Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Communications position performs unexpectedly, FBS Global 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 FBS Global will offset losses from the drop in FBS Global's long position.| B Communications vs. ATT Inc | B Communications vs. Verizon Communications | B Communications vs. Deutsche Telekom AG | B Communications vs. Deutsche Telekom AG |
| FBS Global vs. Gamma Communications plc | FBS Global vs. Jutal Offshore Oil | FBS Global vs. Lamar Advertising | FBS Global vs. Xtera Communications |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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