Correlation Between Fuh Hwa and Capital ICE
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By analyzing existing cross correlation between Fuh Hwa FTSE and Capital ICE International15, you can compare the effects of market volatilities on Fuh Hwa and Capital ICE 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 Capital ICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuh Hwa and Capital ICE.
Diversification Opportunities for Fuh Hwa and Capital ICE
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fuh and Capital is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fuh Hwa FTSE and Capital ICE International15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital ICE Internat 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 FTSE are associated (or correlated) with Capital ICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital ICE Internat has no effect on the direction of Fuh Hwa i.e., Fuh Hwa and Capital ICE go up and down completely randomly.
Pair Corralation between Fuh Hwa and Capital ICE
Assuming the 90 days trading horizon Fuh Hwa FTSE is expected to generate 1.49 times more return on investment than Capital ICE. However, Fuh Hwa is 1.49 times more volatile than Capital ICE International15. It trades about 0.39 of its potential returns per unit of risk. Capital ICE International15 is currently generating about 0.25 per unit of risk. If you would invest 936.00 in Fuh Hwa FTSE on September 5, 2024 and sell it today you would earn a total of 53.00 from holding Fuh Hwa FTSE or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuh Hwa FTSE vs. Capital ICE International15
Performance |
| Timeline |
| Fuh Hwa FTSE |
| Capital ICE Internat |
Fuh Hwa and Capital ICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuh Hwa and Capital ICE
The main advantage of trading using opposite Fuh Hwa and Capital ICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuh Hwa position performs unexpectedly, Capital ICE 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 Capital ICE will offset losses from the drop in Capital ICE's long position.| Fuh Hwa vs. Ruentex Development Co | Fuh Hwa vs. Symtek Automation Asia | Fuh Hwa vs. CTCI Corp | Fuh Hwa vs. Information Technology Total |
| Capital ICE vs. Ruentex Development Co | Capital ICE vs. Symtek Automation Asia | Capital ICE vs. CTCI Corp | Capital ICE vs. Information Technology Total |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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