Correlation Between Fuda Alloy and Tjk Machinery
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By analyzing existing cross correlation between Fuda Alloy Materials and Tjk Machinery Tianjin, you can compare the effects of market volatilities on Fuda Alloy and Tjk Machinery 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 Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Tjk Machinery.
Diversification Opportunities for Fuda Alloy and Tjk Machinery
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fuda and Tjk is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin 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 Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Tjk Machinery go up and down completely randomly.
Pair Corralation between Fuda Alloy and Tjk Machinery
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 1.06 times more return on investment than Tjk Machinery. However, Fuda Alloy is 1.06 times more volatile than Tjk Machinery Tianjin. It trades about 0.2 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about -0.11 per unit of risk. If you would invest 1,281 in Fuda Alloy Materials on October 18, 2024 and sell it today you would earn a total of 184.00 from holding Fuda Alloy Materials or generate 14.36% 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. Tjk Machinery Tianjin
Performance |
| Timeline |
| Fuda Alloy Materials |
| Tjk Machinery Tianjin |
Fuda Alloy and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Tjk Machinery
The main advantage of trading using opposite Fuda Alloy and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.| Fuda Alloy vs. Guangzhou Haozhi Industrial | Fuda Alloy vs. Hengli Industrial Development | Fuda Alloy vs. Rising Nonferrous Metals | Fuda Alloy vs. Ziel Home Furnishing |
| Tjk Machinery vs. Western Metal Materials | Tjk Machinery vs. Malion New Materials | Tjk Machinery vs. Fuda Alloy Materials | Tjk Machinery vs. Uroica Mining Safety |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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