Correlation Between Fenbo Holdings and Versus Systems
Can any of the company-specific risk be diversified away by investing in both Fenbo Holdings and Versus Systems 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 Fenbo Holdings and Versus Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fenbo Holdings Limited and Versus Systems, you can compare the effects of market volatilities on Fenbo Holdings and Versus Systems 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 Fenbo Holdings with a short position of Versus Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fenbo Holdings and Versus Systems.
Diversification Opportunities for Fenbo Holdings and Versus Systems
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fenbo and Versus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fenbo Holdings Limited and Versus Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Versus Systems and Fenbo Holdings 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 Fenbo Holdings Limited are associated (or correlated) with Versus Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Versus Systems has no effect on the direction of Fenbo Holdings i.e., Fenbo Holdings and Versus Systems go up and down completely randomly.
Pair Corralation between Fenbo Holdings and Versus Systems
Given the investment horizon of 90 days Fenbo Holdings Limited is expected to generate 1.54 times more return on investment than Versus Systems. However, Fenbo Holdings is 1.54 times more volatile than Versus Systems. It trades about 0.01 of its potential returns per unit of risk. Versus Systems is currently generating about -0.16 per unit of risk. If you would invest 75.00 in Fenbo Holdings Limited on September 9, 2025 and sell it today you would lose (3.40) from holding Fenbo Holdings Limited or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fenbo Holdings Limited vs. Versus Systems
Performance |
| Timeline |
| Fenbo Holdings |
| Versus Systems |
Fenbo Holdings and Versus Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fenbo Holdings and Versus Systems
The main advantage of trading using opposite Fenbo Holdings and Versus Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fenbo Holdings position performs unexpectedly, Versus Systems 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 Versus Systems will offset losses from the drop in Versus Systems' long position.| Fenbo Holdings vs. Versus Systems | Fenbo Holdings vs. Socket Mobile | Fenbo Holdings vs. Ryvyl Inc | Fenbo Holdings vs. Emerson Radio |
| Versus Systems vs. Lucas GC Limited | Versus Systems vs. Orangekloud Technology Class | Versus Systems vs. AGM Group Holdings | Versus Systems vs. Infobird Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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