Correlation Between FSPG Hi and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between FSPG Hi Tech Co and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on FSPG Hi and Beijing HuaYuanYiTong 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 FSPG Hi with a short position of Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Beijing HuaYuanYiTong.
Diversification Opportunities for FSPG Hi and Beijing HuaYuanYiTong
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FSPG and Beijing is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong and FSPG Hi 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 FSPG Hi Tech Co are associated (or correlated) with Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of FSPG Hi i.e., FSPG Hi and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between FSPG Hi and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 1.18 times more return on investment than Beijing HuaYuanYiTong. However, FSPG Hi is 1.18 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about -0.15 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about -0.27 per unit of risk. If you would invest 615.00 in FSPG Hi Tech Co on October 28, 2024 and sell it today you would lose (42.00) from holding FSPG Hi Tech Co or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| FSPG Hi Tech |
| Beijing HuaYuanYiTong |
FSPG Hi and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Beijing HuaYuanYiTong
The main advantage of trading using opposite FSPG Hi and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| FSPG Hi vs. PKU HealthCare Corp | FSPG Hi vs. Shandong Sinoglory Health | FSPG Hi vs. Youngy Health Co | FSPG Hi vs. Dezhan HealthCare 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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