Correlation Between Wabmsx and Fkhemx
Can any of the company-specific risk be diversified away by investing in both Wabmsx and Fkhemx 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 Wabmsx and Fkhemx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wabmsx and Fkhemx, you can compare the effects of market volatilities on Wabmsx and Fkhemx 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 Wabmsx with a short position of Fkhemx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabmsx and Fkhemx.
Diversification Opportunities for Wabmsx and Fkhemx
Almost no diversification
The 3 months correlation between Wabmsx and Fkhemx is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Wabmsx and Fkhemx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fkhemx and Wabmsx 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 Wabmsx are associated (or correlated) with Fkhemx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fkhemx has no effect on the direction of Wabmsx i.e., Wabmsx and Fkhemx go up and down completely randomly.
Pair Corralation between Wabmsx and Fkhemx
Assuming the 90 days trading horizon Wabmsx is expected to generate 1.0 times less return on investment than Fkhemx. But when comparing it to its historical volatility, Wabmsx is 1.22 times less risky than Fkhemx. It trades about 0.08 of its potential returns per unit of risk. Fkhemx is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,053 in Fkhemx on September 7, 2025 and sell it today you would earn a total of 186.00 from holding Fkhemx or generate 17.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.15% |
| Values | Daily Returns |
Wabmsx vs. Fkhemx
Performance |
| Timeline |
| Wabmsx |
| Fkhemx |
Wabmsx and Fkhemx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wabmsx and Fkhemx
The main advantage of trading using opposite Wabmsx and Fkhemx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabmsx position performs unexpectedly, Fkhemx 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 Fkhemx will offset losses from the drop in Fkhemx's long position.| Wabmsx vs. Advent Claymore Convertible | Wabmsx vs. Putnam Convertible Securities | Wabmsx vs. Calamos Dynamic Convertible | Wabmsx vs. Gabelli Convertible And |
| Fkhemx vs. Principal Lifetime Hybrid | Fkhemx vs. Fulcrum Diversified Absolute | Fkhemx vs. Wilmington Diversified Income | Fkhemx vs. Columbia Diversified Equity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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