Correlation Between Fuda Alloy and China Everbright
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By analyzing existing cross correlation between Fuda Alloy Materials and China Everbright Bank, you can compare the effects of market volatilities on Fuda Alloy and China Everbright 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 China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and China Everbright.
Diversification Opportunities for Fuda Alloy and China Everbright
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fuda and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright 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 China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and China Everbright go up and down completely randomly.
Pair Corralation between Fuda Alloy and China Everbright
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to under-perform the China Everbright. In addition to that, Fuda Alloy is 1.83 times more volatile than China Everbright Bank. It trades about -0.08 of its total potential returns per unit of risk. China Everbright Bank is currently generating about 0.12 per unit of volatility. If you would invest 342.00 in China Everbright Bank on August 28, 2024 and sell it today you would earn a total of 12.00 from holding China Everbright Bank or generate 3.51% 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. China Everbright Bank
Performance |
| Timeline |
| Fuda Alloy Materials |
| China Everbright Bank |
Fuda Alloy and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and China Everbright
The main advantage of trading using opposite Fuda Alloy and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright's long position.| Fuda Alloy vs. Hangzhou Pinming Software | Fuda Alloy vs. China National Software | Fuda Alloy vs. Contec Medical Systems | Fuda Alloy vs. Shenzhen Glory Medical |
| China Everbright vs. Agricultural Bank of | China Everbright vs. Industrial and Commercial | China Everbright vs. Bank of China | China Everbright vs. China Construction Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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