Correlation Between Fuda Alloy and Inner Mongolia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fuda Alloy Materials and Inner Mongolia BaoTou, you can compare the effects of market volatilities on Fuda Alloy and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Inner Mongolia.
Diversification Opportunities for Fuda Alloy and Inner Mongolia
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fuda and Inner is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Inner Mongolia BaoTou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia BaoTou 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia BaoTou has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Inner Mongolia go up and down completely randomly.
Pair Corralation between Fuda Alloy and Inner Mongolia
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 1.56 times more return on investment than Inner Mongolia. However, Fuda Alloy is 1.56 times more volatile than Inner Mongolia BaoTou. It trades about 0.01 of its potential returns per unit of risk. Inner Mongolia BaoTou is currently generating about -0.01 per unit of risk. If you would invest 1,513 in Fuda Alloy Materials on October 27, 2024 and sell it today you would earn a total of 20.00 from holding Fuda Alloy Materials or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Inner Mongolia BaoTou
Performance |
| Timeline |
| Fuda Alloy Materials |
| Inner Mongolia BaoTou |
Fuda Alloy and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Inner Mongolia
The main advantage of trading using opposite Fuda Alloy and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Fuda Alloy vs. Industrial and Commercial | Fuda Alloy vs. China Construction Bank | Fuda Alloy vs. Bank of China | Fuda Alloy vs. Agricultural Bank of |
| Inner Mongolia vs. China Eastern Airlines | Inner Mongolia vs. Eastroc Beverage Group | Inner Mongolia vs. Muyuan Foodstuff Co | Inner Mongolia vs. Youyou Foods 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |