Correlation Between S Fuelcell and APro
Can any of the company-specific risk be diversified away by investing in both S Fuelcell and APro 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 S Fuelcell and APro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between S Fuelcell co and APro Co, you can compare the effects of market volatilities on S Fuelcell and APro 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 S Fuelcell with a short position of APro. Check out your portfolio center. Please also check ongoing floating volatility patterns of S Fuelcell and APro.
Diversification Opportunities for S Fuelcell and APro
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 288620 and APro is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding S Fuelcell co and APro Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APro and S Fuelcell 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 S Fuelcell co are associated (or correlated) with APro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APro has no effect on the direction of S Fuelcell i.e., S Fuelcell and APro go up and down completely randomly.
Pair Corralation between S Fuelcell and APro
Assuming the 90 days trading horizon S Fuelcell co is expected to generate 1.04 times more return on investment than APro. However, S Fuelcell is 1.04 times more volatile than APro Co. It trades about -0.22 of its potential returns per unit of risk. APro Co is currently generating about -0.27 per unit of risk. If you would invest 1,061,000 in S Fuelcell co on August 29, 2024 and sell it today you would lose (150,000) from holding S Fuelcell co or give up 14.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
S Fuelcell co vs. APro Co
Performance |
| Timeline |
| S Fuelcell co |
| APro |
S Fuelcell and APro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S Fuelcell and APro
The main advantage of trading using opposite S Fuelcell and APro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S Fuelcell position performs unexpectedly, APro 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 APro will offset losses from the drop in APro's long position.| S Fuelcell vs. Ecopro BM Co | S Fuelcell vs. Sangsin Energy Display | S Fuelcell vs. Bosung Power Technology | S Fuelcell vs. APro 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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