Correlation Between Fuyao Glass and Talanx AG
Can any of the company-specific risk be diversified away by investing in both Fuyao Glass and Talanx AG 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 Fuyao Glass and Talanx AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuyao Glass Industry and Talanx AG, you can compare the effects of market volatilities on Fuyao Glass and Talanx AG 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 Fuyao Glass with a short position of Talanx AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuyao Glass and Talanx AG.
Diversification Opportunities for Fuyao Glass and Talanx AG
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fuyao and Talanx is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fuyao Glass Industry and Talanx AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talanx AG and Fuyao Glass 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 Fuyao Glass Industry are associated (or correlated) with Talanx AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talanx AG has no effect on the direction of Fuyao Glass i.e., Fuyao Glass and Talanx AG go up and down completely randomly.
Pair Corralation between Fuyao Glass and Talanx AG
Assuming the 90 days horizon Fuyao Glass Industry is expected to generate 1.73 times more return on investment than Talanx AG. However, Fuyao Glass is 1.73 times more volatile than Talanx AG. It trades about 0.15 of its potential returns per unit of risk. Talanx AG is currently generating about 0.03 per unit of risk. If you would invest 510.00 in Fuyao Glass Industry on September 2, 2024 and sell it today you would earn a total of 115.00 from holding Fuyao Glass Industry or generate 22.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuyao Glass Industry vs. Talanx AG
Performance |
| Timeline |
| Fuyao Glass Industry |
| Talanx AG |
Fuyao Glass and Talanx AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuyao Glass and Talanx AG
The main advantage of trading using opposite Fuyao Glass and Talanx AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuyao Glass position performs unexpectedly, Talanx AG 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 Talanx AG will offset losses from the drop in Talanx AG's long position.| Fuyao Glass vs. PT Astra International | Fuyao Glass vs. Superior Plus Corp | Fuyao Glass vs. NMI Holdings | Fuyao Glass vs. Origin Agritech |
| Talanx AG vs. GameStop Corp | Talanx AG vs. Spirent Communications plc | Talanx AG vs. International Game Technology | Talanx AG vs. PENN NATL GAMING |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |