Correlation Between First Copper and Tex Ray
Can any of the company-specific risk be diversified away by investing in both First Copper and Tex Ray 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 First Copper and Tex Ray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Copper Technology and Tex Ray Industrial Co, you can compare the effects of market volatilities on First Copper and Tex Ray 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 First Copper with a short position of Tex Ray. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Copper and Tex Ray.
Diversification Opportunities for First Copper and Tex Ray
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Tex is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding First Copper Technology and Tex Ray Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tex Ray Industrial and First Copper 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 First Copper Technology are associated (or correlated) with Tex Ray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tex Ray Industrial has no effect on the direction of First Copper i.e., First Copper and Tex Ray go up and down completely randomly.
Pair Corralation between First Copper and Tex Ray
Assuming the 90 days trading horizon First Copper Technology is expected to under-perform the Tex Ray. In addition to that, First Copper is 1.52 times more volatile than Tex Ray Industrial Co. It trades about -0.08 of its total potential returns per unit of risk. Tex Ray Industrial Co is currently generating about -0.03 per unit of volatility. If you would invest 1,150 in Tex Ray Industrial Co on September 1, 2024 and sell it today you would lose (70.00) from holding Tex Ray Industrial Co or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Copper Technology vs. Tex Ray Industrial Co
Performance |
| Timeline |
| First Copper Technology |
| Tex Ray Industrial |
First Copper and Tex Ray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Copper and Tex Ray
The main advantage of trading using opposite First Copper and Tex Ray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Copper position performs unexpectedly, Tex Ray 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 Tex Ray will offset losses from the drop in Tex Ray's long position.| First Copper vs. Basso Industry Corp | First Copper vs. Chung Hsin Electric Machinery | First Copper vs. TYC Brother Industrial | First Copper vs. TECO Electric Machinery |
| Tex Ray vs. Tainan Enterprises Co | Tex Ray vs. De Licacy Industrial | Tex Ray vs. Nien Hsing Textile | Tex Ray vs. Wisher Industrial 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |