Correlation Between Fitipower Integrated and First Copper
Can any of the company-specific risk be diversified away by investing in both Fitipower Integrated and First Copper 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 Fitipower Integrated and First Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fitipower Integrated Technology and First Copper Technology, you can compare the effects of market volatilities on Fitipower Integrated and First Copper 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 Fitipower Integrated with a short position of First Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitipower Integrated and First Copper.
Diversification Opportunities for Fitipower Integrated and First Copper
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fitipower and First is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Fitipower Integrated Technolog and First Copper Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Copper Technology and Fitipower Integrated 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 Fitipower Integrated Technology are associated (or correlated) with First Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Copper Technology has no effect on the direction of Fitipower Integrated i.e., Fitipower Integrated and First Copper go up and down completely randomly.
Pair Corralation between Fitipower Integrated and First Copper
Assuming the 90 days trading horizon Fitipower Integrated Technology is expected to under-perform the First Copper. But the stock apears to be less risky and, when comparing its historical volatility, Fitipower Integrated Technology is 1.04 times less risky than First Copper. The stock trades about -0.11 of its potential returns per unit of risk. The First Copper Technology is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 3,795 in First Copper Technology on October 24, 2024 and sell it today you would lose (105.00) from holding First Copper Technology or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fitipower Integrated Technolog vs. First Copper Technology
Performance |
| Timeline |
| Fitipower Integrated |
| First Copper Technology |
Fitipower Integrated and First Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fitipower Integrated and First Copper
The main advantage of trading using opposite Fitipower Integrated and First Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitipower Integrated position performs unexpectedly, First Copper 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 First Copper will offset losses from the drop in First Copper's long position.| Fitipower Integrated vs. FocalTech Systems Co | Fitipower Integrated vs. Novatek Microelectronics Corp | Fitipower Integrated vs. Sitronix Technology Corp | Fitipower Integrated vs. AP Memory Technology |
| First Copper vs. Chung Hung Steel | First Copper vs. Ta Chen Stainless | First Copper vs. Tung Ho Steel | First Copper vs. Yieh Phui Enterprise |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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