Correlation Between Fitipower Integrated and China Airlines
Can any of the company-specific risk be diversified away by investing in both Fitipower Integrated and China Airlines 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 China Airlines 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 China Airlines, you can compare the effects of market volatilities on Fitipower Integrated and China Airlines 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 China Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitipower Integrated and China Airlines.
Diversification Opportunities for Fitipower Integrated and China Airlines
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fitipower and China is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fitipower Integrated Technolog and China Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Airlines 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 China Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Airlines has no effect on the direction of Fitipower Integrated i.e., Fitipower Integrated and China Airlines go up and down completely randomly.
Pair Corralation between Fitipower Integrated and China Airlines
Assuming the 90 days trading horizon Fitipower Integrated Technology is expected to generate 1.3 times more return on investment than China Airlines. However, Fitipower Integrated is 1.3 times more volatile than China Airlines. It trades about 0.02 of its potential returns per unit of risk. China Airlines is currently generating about 0.02 per unit of risk. If you would invest 22,145 in Fitipower Integrated Technology on August 27, 2024 and sell it today you would earn a total of 1,855 from holding Fitipower Integrated Technology or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Fitipower Integrated Technolog vs. China Airlines
Performance |
| Timeline |
| Fitipower Integrated |
| China Airlines |
Fitipower Integrated and China Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fitipower Integrated and China Airlines
The main advantage of trading using opposite Fitipower Integrated and China Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitipower Integrated position performs unexpectedly, China Airlines 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 China Airlines will offset losses from the drop in China Airlines' 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 |
| China Airlines vs. Sunny Friend Environmental | China Airlines vs. TTET Union Corp | China Airlines vs. ECOVE Environment Corp | China Airlines vs. Yulon Finance Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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