Correlation Between Fuda Alloy and Cultural Investment
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By analyzing existing cross correlation between Fuda Alloy Materials and Cultural Investment Holdings, you can compare the effects of market volatilities on Fuda Alloy and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Cultural Investment.
Diversification Opportunities for Fuda Alloy and Cultural Investment
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fuda and Cultural is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Cultural Investment go up and down completely randomly.
Pair Corralation between Fuda Alloy and Cultural Investment
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 1.04 times more return on investment than Cultural Investment. However, Fuda Alloy is 1.04 times more volatile than Cultural Investment Holdings. It trades about 0.11 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.09 per unit of risk. If you would invest 1,172 in Fuda Alloy Materials on August 29, 2024 and sell it today you would earn a total of 145.00 from holding Fuda Alloy Materials or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Cultural Investment Holdings
Performance |
| Timeline |
| Fuda Alloy Materials |
| Cultural Investment |
Fuda Alloy and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Cultural Investment
The main advantage of trading using opposite Fuda Alloy and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Fuda Alloy vs. Fujian Newland Computer | Fuda Alloy vs. Zhangjiagang Freetrade Science | Fuda Alloy vs. China World Trade | Fuda Alloy vs. Everdisplay Optronics Shanghai |
| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Bank of China |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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