Correlation Between China World and Fuda Alloy
Specify exactly 2 symbols:
By analyzing existing cross correlation between China World Trade and Fuda Alloy Materials, you can compare the effects of market volatilities on China World and Fuda Alloy 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 China World with a short position of Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Fuda Alloy.
Diversification Opportunities for China World and Fuda Alloy
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Fuda is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials and China World 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 China World Trade are associated (or correlated) with Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of China World i.e., China World and Fuda Alloy go up and down completely randomly.
Pair Corralation between China World and Fuda Alloy
Assuming the 90 days trading horizon China World Trade is expected to under-perform the Fuda Alloy. But the stock apears to be less risky and, when comparing its historical volatility, China World Trade is 1.44 times less risky than Fuda Alloy. The stock trades about -0.26 of its potential returns per unit of risk. The Fuda Alloy Materials is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,517 in Fuda Alloy Materials on November 27, 2024 and sell it today you would lose (54.00) from holding Fuda Alloy Materials or give up 3.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Fuda Alloy Materials
Performance |
| Timeline |
| China World Trade |
| Fuda Alloy Materials |
China World and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Fuda Alloy
The main advantage of trading using opposite China World and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| China World vs. Impulse Qingdao Health | China World vs. Citic Guoan Wine | China World vs. Meinian Onehealth Healthcare | China World vs. Quectel Wireless Solutions |
| Fuda Alloy vs. Montage Technology Co | Fuda Alloy vs. Nsfocus Information Technology | Fuda Alloy vs. Guangzhou KingTeller Technology | Fuda Alloy vs. JuneYao Dairy 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |