Correlation Between Fuse Science and Tingo

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

By analyzing existing cross correlation between Fuse Science and Tingo Inc, you can compare the effects of market volatilities on Fuse Science and Tingo 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 Fuse Science with a short position of Tingo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuse Science and Tingo.

Diversification Opportunities for Fuse Science and Tingo

0.0

Correlation Coefficient

Fuse Science  Tingo

Pay attention - limited upside

The 3 months correlation between Fuse and Tingo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fuse Science and Tingo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingo Inc and Fuse Science 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 Fuse Science are associated (or correlated) with Tingo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingo Inc has no effect on the direction of Fuse Science i.e., Fuse Science and Tingo go up and down completely randomly.

Pair Corralation between Fuse Science and Tingo

Given the investment horizon of 90 days Fuse Science is expected to generate 3.77 times more return on investment than Tingo. However, Fuse Science is 3.77 times more volatile than Tingo Inc. It trades about 0.07 of its potential returns per unit of risk. Tingo Inc is currently generating about -0.09 per unit of risk. If you would invest  1.03  in Fuse Science on September 18, 2024 and sell it today you would lose (0.43) from holding Fuse Science or give up 41.75% of portfolio value over 90 days.

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

Fuse Science  vs.  Tingo Inc

Fuse Science

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fuse Science are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fuse Science reported solid returns over the last few months and may actually be approaching a breakup point.

Tingo Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tingo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tingo is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fuse Science and Tingo

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

The idea behind Fuse Science and Tingo Inc 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.