Correlation Between Farglory FTZ and Avalue Technology
Can any of the company-specific risk be diversified away by investing in both Farglory FTZ and Avalue Technology 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 Farglory FTZ and Avalue Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farglory FTZ Investment and Avalue Technology, you can compare the effects of market volatilities on Farglory FTZ and Avalue Technology 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 Farglory FTZ with a short position of Avalue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farglory FTZ and Avalue Technology.
Diversification Opportunities for Farglory FTZ and Avalue Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Farglory and Avalue is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Farglory FTZ Investment and Avalue Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avalue Technology and Farglory FTZ 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 Farglory FTZ Investment are associated (or correlated) with Avalue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avalue Technology has no effect on the direction of Farglory FTZ i.e., Farglory FTZ and Avalue Technology go up and down completely randomly.
Pair Corralation between Farglory FTZ and Avalue Technology
Assuming the 90 days trading horizon Farglory FTZ Investment is expected to under-perform the Avalue Technology. But the stock apears to be less risky and, when comparing its historical volatility, Farglory FTZ Investment is 1.09 times less risky than Avalue Technology. The stock trades about -0.05 of its potential returns per unit of risk. The Avalue Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 10,781 in Avalue Technology on January 21, 2025 and sell it today you would lose (1,681) from holding Avalue Technology or give up 15.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Farglory FTZ Investment vs. Avalue Technology
Performance |
| Timeline |
| Farglory FTZ Investment |
| Avalue Technology |
Farglory FTZ and Avalue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farglory FTZ and Avalue Technology
The main advantage of trading using opposite Farglory FTZ and Avalue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farglory FTZ position performs unexpectedly, Avalue Technology 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 Avalue Technology will offset losses from the drop in Avalue Technology's long position.| Farglory FTZ vs. Evergreen International Storage | Farglory FTZ vs. China Container Terminal | Farglory FTZ vs. Sincere Navigation Corp | Farglory FTZ vs. CSBC Corp Taiwan |
| Avalue Technology vs. Quanta Computer | Avalue Technology vs. Wiwynn Corp | Avalue Technology vs. Getac Technology Corp | Avalue Technology vs. InnoDisk |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |