Correlation Between Fuda Alloy and Advanced Technology
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By analyzing existing cross correlation between Fuda Alloy Materials and Advanced Technology Materials, you can compare the effects of market volatilities on Fuda Alloy and Advanced 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 Fuda Alloy with a short position of Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Advanced Technology.
Diversification Opportunities for Fuda Alloy and Advanced Technology
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fuda and Advanced is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology 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 Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Advanced Technology go up and down completely randomly.
Pair Corralation between Fuda Alloy and Advanced Technology
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to under-perform the Advanced Technology. But the stock apears to be less risky and, when comparing its historical volatility, Fuda Alloy Materials is 1.72 times less risky than Advanced Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Advanced Technology Materials is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,085 in Advanced Technology Materials on September 1, 2024 and sell it today you would earn a total of 136.00 from holding Advanced Technology Materials or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Advanced Technology Materials
Performance |
| Timeline |
| Fuda Alloy Materials |
| Advanced Technology |
Fuda Alloy and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Advanced Technology
The main advantage of trading using opposite Fuda Alloy and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Advanced 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| Fuda Alloy vs. Cultural Investment Holdings | Fuda Alloy vs. Gome Telecom Equipment | Fuda Alloy vs. Bus Online Co | Fuda Alloy vs. Holitech Technology 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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