Correlation Between Fuda Alloy and Industrial Bank
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By analyzing existing cross correlation between Fuda Alloy Materials and Industrial Bank Co, you can compare the effects of market volatilities on Fuda Alloy and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Industrial Bank.
Diversification Opportunities for Fuda Alloy and Industrial Bank
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fuda and Industrial is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Industrial Bank go up and down completely randomly.
Pair Corralation between Fuda Alloy and Industrial Bank
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to under-perform the Industrial Bank. In addition to that, Fuda Alloy is 1.85 times more volatile than Industrial Bank Co. It trades about -0.01 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.04 per unit of volatility. If you would invest 1,557 in Industrial Bank Co on August 25, 2024 and sell it today you would earn a total of 223.00 from holding Industrial Bank Co or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Industrial Bank Co
Performance |
| Timeline |
| Fuda Alloy Materials |
| Industrial Bank |
Fuda Alloy and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Industrial Bank
The main advantage of trading using opposite Fuda Alloy and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Fuda Alloy vs. Ye Chiu Metal | Fuda Alloy vs. Union Semiconductor Co | Fuda Alloy vs. Ping An Insurance | Fuda Alloy vs. Xinjiang Baodi Mining |
| Industrial Bank vs. Gan Yuan Foods | Industrial Bank vs. Jiangnan Mould Plastic | Industrial Bank vs. Malion New Materials | Industrial Bank vs. Fuda Alloy 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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