Correlation Between FDC International and Microtips Technology
Can any of the company-specific risk be diversified away by investing in both FDC International and Microtips Technology 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 FDC International and Microtips Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDC International Hotels and Microtips Technology, you can compare the effects of market volatilities on FDC International and Microtips Technology 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 FDC International with a short position of Microtips Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDC International and Microtips Technology.
Diversification Opportunities for FDC International and Microtips Technology
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FDC and Microtips is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding FDC International Hotels and Microtips Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microtips Technology and FDC International 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 FDC International Hotels are associated (or correlated) with Microtips Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microtips Technology has no effect on the direction of FDC International i.e., FDC International and Microtips Technology go up and down completely randomly.
Pair Corralation between FDC International and Microtips Technology
Assuming the 90 days trading horizon FDC International Hotels is expected to under-perform the Microtips Technology. In addition to that, FDC International is 1.14 times more volatile than Microtips Technology. It trades about -0.02 of its total potential returns per unit of risk. Microtips Technology is currently generating about 0.04 per unit of volatility. If you would invest 1,995 in Microtips Technology on November 28, 2024 and sell it today you would earn a total of 665.00 from holding Microtips Technology or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FDC International Hotels vs. Microtips Technology
Performance |
| Timeline |
| FDC International Hotels |
| Microtips Technology |
FDC International and Microtips Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDC International and Microtips Technology
The main advantage of trading using opposite FDC International and Microtips Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDC International position performs unexpectedly, Microtips Technology 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 Microtips Technology will offset losses from the drop in Microtips Technology's long position.| FDC International vs. Formosa International Hotels | FDC International vs. My Humble House | FDC International vs. Wanhwa Enterprise Co | FDC International vs. Gourmet Master Co |
| Microtips Technology vs. Camellia Metal Co | Microtips Technology vs. Lian Hwa Foods | Microtips Technology vs. Softstar Entertainment | Microtips Technology vs. U Media Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |