Correlation Between Fuh Hwa and Fuh Hwa
Can any of the company-specific risk be diversified away by investing in both Fuh Hwa and Fuh Hwa 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 Fuh Hwa and Fuh Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuh Hwa Daily and Fuh Hwa Hang, you can compare the effects of market volatilities on Fuh Hwa and Fuh Hwa 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 Fuh Hwa with a short position of Fuh Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuh Hwa and Fuh Hwa.
Diversification Opportunities for Fuh Hwa and Fuh Hwa
Pay attention - limited upside
The 3 months correlation between Fuh and Fuh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fuh Hwa Daily and Fuh Hwa Hang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuh Hwa Hang and Fuh Hwa 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 Fuh Hwa Daily are associated (or correlated) with Fuh Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuh Hwa Hang has no effect on the direction of Fuh Hwa i.e., Fuh Hwa and Fuh Hwa go up and down completely randomly.
Pair Corralation between Fuh Hwa and Fuh Hwa
If you would invest 1,257 in Fuh Hwa Daily on September 4, 2024 and sell it today you would lose (104.00) from holding Fuh Hwa Daily or give up 8.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fuh Hwa Daily vs. Fuh Hwa Hang
Performance |
| Timeline |
| Fuh Hwa Daily |
| Fuh Hwa Hang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fuh Hwa and Fuh Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuh Hwa and Fuh Hwa
The main advantage of trading using opposite Fuh Hwa and Fuh Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuh Hwa position performs unexpectedly, Fuh Hwa 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 Fuh Hwa will offset losses from the drop in Fuh Hwa's long position.| Fuh Hwa vs. Cathay Taiwan 5G | Fuh Hwa vs. Ruentex Development Co | Fuh Hwa vs. Symtek Automation Asia | Fuh Hwa vs. CTCI Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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