Correlation Between Fitipower Integrated and Lungyen Life
Can any of the company-specific risk be diversified away by investing in both Fitipower Integrated and Lungyen Life 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 Lungyen Life 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 Lungyen Life Service, you can compare the effects of market volatilities on Fitipower Integrated and Lungyen Life 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 Lungyen Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitipower Integrated and Lungyen Life.
Diversification Opportunities for Fitipower Integrated and Lungyen Life
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fitipower and Lungyen is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fitipower Integrated Technolog and Lungyen Life Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lungyen Life Service 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 Lungyen Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lungyen Life Service has no effect on the direction of Fitipower Integrated i.e., Fitipower Integrated and Lungyen Life go up and down completely randomly.
Pair Corralation between Fitipower Integrated and Lungyen Life
Assuming the 90 days trading horizon Fitipower Integrated Technology is expected to generate 1.17 times more return on investment than Lungyen Life. However, Fitipower Integrated is 1.17 times more volatile than Lungyen Life Service. It trades about -0.11 of its potential returns per unit of risk. Lungyen Life Service is currently generating about -0.28 per unit of risk. If you would invest 23,300 in Fitipower Integrated Technology on October 29, 2024 and sell it today you would lose (600.00) from holding Fitipower Integrated Technology or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fitipower Integrated Technolog vs. Lungyen Life Service
Performance |
| Timeline |
| Fitipower Integrated |
| Lungyen Life Service |
Fitipower Integrated and Lungyen Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fitipower Integrated and Lungyen Life
The main advantage of trading using opposite Fitipower Integrated and Lungyen Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitipower Integrated position performs unexpectedly, Lungyen Life 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 Lungyen Life will offset losses from the drop in Lungyen Life'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 |
| Lungyen Life vs. Cleanaway Co | Lungyen Life vs. StShine Optical Co | Lungyen Life vs. Formosa International Hotels | Lungyen Life vs. Poya International 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 CEOs Directory module to screen CEOs from public companies around the world.
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