Correlation Between Fulltech Fiber and New Era
Can any of the company-specific risk be diversified away by investing in both Fulltech Fiber and New Era 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 Fulltech Fiber and New Era into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulltech Fiber Glass and New Era Electronics, you can compare the effects of market volatilities on Fulltech Fiber and New Era 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 Fulltech Fiber with a short position of New Era. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulltech Fiber and New Era.
Diversification Opportunities for Fulltech Fiber and New Era
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fulltech and New is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fulltech Fiber Glass and New Era Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Era Electronics and Fulltech Fiber 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 Fulltech Fiber Glass are associated (or correlated) with New Era. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Era Electronics has no effect on the direction of Fulltech Fiber i.e., Fulltech Fiber and New Era go up and down completely randomly.
Pair Corralation between Fulltech Fiber and New Era
Assuming the 90 days trading horizon Fulltech Fiber Glass is expected to generate 0.86 times more return on investment than New Era. However, Fulltech Fiber Glass is 1.16 times less risky than New Era. It trades about 0.11 of its potential returns per unit of risk. New Era Electronics is currently generating about -0.04 per unit of risk. If you would invest 2,270 in Fulltech Fiber Glass on September 3, 2024 and sell it today you would earn a total of 565.00 from holding Fulltech Fiber Glass or generate 24.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fulltech Fiber Glass vs. New Era Electronics
Performance |
| Timeline |
| Fulltech Fiber Glass |
| New Era Electronics |
Fulltech Fiber and New Era Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulltech Fiber and New Era
The main advantage of trading using opposite Fulltech Fiber and New Era positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulltech Fiber position performs unexpectedly, New Era 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 New Era will offset losses from the drop in New Era's long position.| Fulltech Fiber vs. New Era Electronics | Fulltech Fiber vs. Rich Development Co | Fulltech Fiber vs. Yem Chio Co | Fulltech Fiber vs. Kuo Toong International |
| New Era vs. Farglory FTZ Investment | New Era vs. Simple Mart Retail | New Era vs. uPI Semiconductor Corp | New Era vs. Syntek Semiconductor 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |