Correlation Between Fuda Alloy and Tieling Newcity
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By analyzing existing cross correlation between Fuda Alloy Materials and Tieling Newcity Investment, you can compare the effects of market volatilities on Fuda Alloy and Tieling Newcity 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 Fuda Alloy with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Tieling Newcity.
Diversification Opportunities for Fuda Alloy and Tieling Newcity
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fuda and Tieling is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve and Fuda Alloy 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 Fuda Alloy Materials are associated (or correlated) with Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Tieling Newcity go up and down completely randomly.
Pair Corralation between Fuda Alloy and Tieling Newcity
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 1.48 times more return on investment than Tieling Newcity. However, Fuda Alloy is 1.48 times more volatile than Tieling Newcity Investment. It trades about 0.28 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about -0.05 per unit of risk. If you would invest 1,258 in Fuda Alloy Materials on November 3, 2024 and sell it today you would earn a total of 259.00 from holding Fuda Alloy Materials or generate 20.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Tieling Newcity Investment
Performance |
| Timeline |
| Fuda Alloy Materials |
| Tieling Newcity Inve |
Fuda Alloy and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Tieling Newcity
The main advantage of trading using opposite Fuda Alloy and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Fuda Alloy vs. Zhongrun Resources Investment | Fuda Alloy vs. Shanghai Material Trading | Fuda Alloy vs. Nuode Investment Co | Fuda Alloy vs. Tieling Newcity Investment |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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