Correlation Between FC Investment and Roebuck Food
Can any of the company-specific risk be diversified away by investing in both FC Investment and Roebuck Food 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 FC Investment and Roebuck Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FC Investment Trust and Roebuck Food Group, you can compare the effects of market volatilities on FC Investment and Roebuck Food 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 FC Investment with a short position of Roebuck Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and Roebuck Food.
Diversification Opportunities for FC Investment and Roebuck Food
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FCIT and Roebuck is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Roebuck Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roebuck Food Group and FC Investment 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 FC Investment Trust are associated (or correlated) with Roebuck Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roebuck Food Group has no effect on the direction of FC Investment i.e., FC Investment and Roebuck Food go up and down completely randomly.
Pair Corralation between FC Investment and Roebuck Food
Assuming the 90 days trading horizon FC Investment is expected to generate 1.7 times less return on investment than Roebuck Food. But when comparing it to its historical volatility, FC Investment Trust is 3.47 times less risky than Roebuck Food. It trades about 0.07 of its potential returns per unit of risk. Roebuck Food Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Roebuck Food Group on July 20, 2025 and sell it today you would earn a total of 50.00 from holding Roebuck Food Group or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
FC Investment Trust vs. Roebuck Food Group
Performance |
| Timeline |
| FC Investment Trust |
| Roebuck Food Group |
FC Investment and Roebuck Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and Roebuck Food
The main advantage of trading using opposite FC Investment and Roebuck Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, Roebuck Food 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 Roebuck Food will offset losses from the drop in Roebuck Food's long position.| FC Investment vs. Premier Foods PLC | FC Investment vs. Southern Copper Corp | FC Investment vs. Resolute Mining Limited | FC Investment vs. Lundin Mining Corp |
| Roebuck Food vs. Alfa Financial Software | Roebuck Food vs. Cellnex Telecom SA | Roebuck Food vs. Sovereign Metals | Roebuck Food vs. Spirent Communications plc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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