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 FTSE, 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
Very weak diversification
The 3 months correlation between Fuh and Fuh is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fuh Hwa Daily and Fuh Hwa FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuh Hwa FTSE 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 FTSE 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
Assuming the 90 days trading horizon Fuh Hwa is expected to generate 13.21 times less return on investment than Fuh Hwa. In addition to that, Fuh Hwa is 3.17 times more volatile than Fuh Hwa FTSE. It trades about 0.0 of its total potential returns per unit of risk. Fuh Hwa FTSE is currently generating about 0.06 per unit of volatility. If you would invest 5,314 in Fuh Hwa FTSE on September 4, 2024 and sell it today you would earn a total of 1,516 from holding Fuh Hwa FTSE or generate 28.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fuh Hwa Daily vs. Fuh Hwa FTSE
Performance |
| Timeline |
| Fuh Hwa Daily |
| Fuh Hwa FTSE |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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