Correlation Between Ziel Home and Fuda Alloy
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By analyzing existing cross correlation between Ziel Home Furnishing and Fuda Alloy Materials, you can compare the effects of market volatilities on Ziel Home 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 Ziel Home with a short position of Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and Fuda Alloy.
Diversification Opportunities for Ziel Home and Fuda Alloy
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ziel and Fuda is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing 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 Ziel Home 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 Ziel Home Furnishing 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 Ziel Home i.e., Ziel Home and Fuda Alloy go up and down completely randomly.
Pair Corralation between Ziel Home and Fuda Alloy
Assuming the 90 days trading horizon Ziel Home Furnishing is expected to under-perform the Fuda Alloy. But the stock apears to be less risky and, when comparing its historical volatility, Ziel Home Furnishing is 1.55 times less risky than Fuda Alloy. The stock trades about -0.11 of its potential returns per unit of risk. The Fuda Alloy Materials is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,361 in Fuda Alloy Materials on October 17, 2024 and sell it today you would earn a total of 60.00 from holding Fuda Alloy Materials or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziel Home Furnishing vs. Fuda Alloy Materials
Performance |
| Timeline |
| Ziel Home Furnishing |
| Fuda Alloy Materials |
Ziel Home and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and Fuda Alloy
The main advantage of trading using opposite Ziel Home and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home 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.| Ziel Home vs. Changchun Engley Automobile | Ziel Home vs. Jiangsu Xinri E Vehicle | Ziel Home vs. CIMC Vehicles Co | Ziel Home vs. Bloomage Biotechnology Corp |
| Fuda Alloy vs. Guangzhou Haozhi Industrial | Fuda Alloy vs. Hengli Industrial Development | Fuda Alloy vs. Rising Nonferrous Metals | Fuda Alloy vs. Ziel Home Furnishing |
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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