Correlation Between Amulaire Thermal and Grand Fortune
Can any of the company-specific risk be diversified away by investing in both Amulaire Thermal and Grand Fortune 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 Amulaire Thermal and Grand Fortune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amulaire Thermal Technology and Grand Fortune Securities, you can compare the effects of market volatilities on Amulaire Thermal and Grand Fortune 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 Amulaire Thermal with a short position of Grand Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amulaire Thermal and Grand Fortune.
Diversification Opportunities for Amulaire Thermal and Grand Fortune
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amulaire and Grand is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amulaire Thermal Technology and Grand Fortune Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Fortune Securities and Amulaire Thermal 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 Amulaire Thermal Technology are associated (or correlated) with Grand Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Fortune Securities has no effect on the direction of Amulaire Thermal i.e., Amulaire Thermal and Grand Fortune go up and down completely randomly.
Pair Corralation between Amulaire Thermal and Grand Fortune
Assuming the 90 days trading horizon Amulaire Thermal Technology is expected to generate 4.61 times more return on investment than Grand Fortune. However, Amulaire Thermal is 4.61 times more volatile than Grand Fortune Securities. It trades about 0.14 of its potential returns per unit of risk. Grand Fortune Securities is currently generating about 0.03 per unit of risk. If you would invest 2,730 in Amulaire Thermal Technology on October 25, 2024 and sell it today you would earn a total of 245.00 from holding Amulaire Thermal Technology or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amulaire Thermal Technology vs. Grand Fortune Securities
Performance |
| Timeline |
| Amulaire Thermal Tec |
| Grand Fortune Securities |
Amulaire Thermal and Grand Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amulaire Thermal and Grand Fortune
The main advantage of trading using opposite Amulaire Thermal and Grand Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amulaire Thermal position performs unexpectedly, Grand Fortune 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 Grand Fortune will offset losses from the drop in Grand Fortune's long position.| Amulaire Thermal vs. Jentech Precision Industrial | Amulaire Thermal vs. Yusin Holding Corp | Amulaire Thermal vs. Laster Tech Corp | Amulaire Thermal vs. Turvo International Co |
| Grand Fortune vs. Chialin Precision Industrial | Grand Fortune vs. China Mobile | Grand Fortune vs. Loop Telecommunication International | Grand Fortune vs. Wah Hong Industrial |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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