Correlation Between Fuda Alloy and Harbin Hatou
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By analyzing existing cross correlation between Fuda Alloy Materials and Harbin Hatou Investment, you can compare the effects of market volatilities on Fuda Alloy and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Harbin Hatou.
Diversification Opportunities for Fuda Alloy and Harbin Hatou
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fuda and Harbin is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Harbin Hatou go up and down completely randomly.
Pair Corralation between Fuda Alloy and Harbin Hatou
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 1.55 times more return on investment than Harbin Hatou. However, Fuda Alloy is 1.55 times more volatile than Harbin Hatou Investment. It trades about 0.28 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about -0.13 per unit of risk. If you would invest 1,258 in Fuda Alloy Materials on November 3, 2024 and sell it today you would earn a total of 259.00 from holding Fuda Alloy Materials or generate 20.59% 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. Harbin Hatou Investment
Performance |
| Timeline |
| Fuda Alloy Materials |
| Harbin Hatou Investment |
Fuda Alloy and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Harbin Hatou
The main advantage of trading using opposite Fuda Alloy and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| Fuda Alloy vs. Industrial and Commercial | Fuda Alloy vs. Kweichow Moutai Co | Fuda Alloy vs. Agricultural Bank of | Fuda Alloy vs. China Mobile Limited |
| Harbin Hatou vs. Dhc Software Co | Harbin Hatou vs. Glodon Software Co | Harbin Hatou vs. Lander Sports Development | Harbin Hatou vs. Linkage Software 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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