Correlation Between Fuda Alloy and Guangzhou Seagull
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By analyzing existing cross correlation between Fuda Alloy Materials and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Fuda Alloy and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Guangzhou Seagull.
Diversification Opportunities for Fuda Alloy and Guangzhou Seagull
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fuda and Guangzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Fuda Alloy and Guangzhou Seagull
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to under-perform the Guangzhou Seagull. In addition to that, Fuda Alloy is 1.08 times more volatile than Guangzhou Seagull Kitchen. It trades about -0.08 of its total potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.1 per unit of volatility. If you would invest 312.00 in Guangzhou Seagull Kitchen on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Guangzhou Seagull Kitchen or generate 4.49% 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. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Fuda Alloy Materials |
| Guangzhou Seagull Kitchen |
Fuda Alloy and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Guangzhou Seagull
The main advantage of trading using opposite Fuda Alloy and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Fuda Alloy vs. Hangzhou Pinming Software | Fuda Alloy vs. China National Software | Fuda Alloy vs. Contec Medical Systems | Fuda Alloy vs. Shenzhen Glory Medical |
| Guangzhou Seagull vs. Suzhou Xingye Material | Guangzhou Seagull vs. Fujian Longzhou Transportation | Guangzhou Seagull vs. King Strong New Material | Guangzhou Seagull vs. Sinosteel Luonai Materials |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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