Correlation Between Sublime China and Fuda Alloy
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By analyzing existing cross correlation between Sublime China Information and Fuda Alloy Materials, you can compare the effects of market volatilities on Sublime China and Fuda Alloy 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 Sublime China with a short position of Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sublime China and Fuda Alloy.
Diversification Opportunities for Sublime China and Fuda Alloy
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sublime and Fuda is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sublime China Information and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials and Sublime China 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 Sublime China Information are associated (or correlated) with Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Sublime China i.e., Sublime China and Fuda Alloy go up and down completely randomly.
Pair Corralation between Sublime China and Fuda Alloy
Assuming the 90 days trading horizon Sublime China Information is expected to under-perform the Fuda Alloy. In addition to that, Sublime China is 1.29 times more volatile than Fuda Alloy Materials. It trades about -0.02 of its total potential returns per unit of risk. Fuda Alloy Materials is currently generating about -0.02 per unit of volatility. If you would invest 1,376 in Fuda Alloy Materials on October 14, 2024 and sell it today you would lose (36.00) from holding Fuda Alloy Materials or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sublime China Information vs. Fuda Alloy Materials
Performance |
| Timeline |
| Sublime China Information |
| Fuda Alloy Materials |
Sublime China and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sublime China and Fuda Alloy
The main advantage of trading using opposite Sublime China and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sublime China position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Sublime China vs. Beijing Yanjing Brewery | Sublime China vs. SSAW Hotels Resorts | Sublime China vs. Vats Liquor Chain | Sublime China vs. Suzhou Industrial Park |
| Fuda Alloy vs. Qiming Information Technology | Fuda Alloy vs. Zhejiang Publishing Media | Fuda Alloy vs. Sublime China Information | Fuda Alloy vs. Zhongfu Information |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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