Correlation Between Fuda Alloy and China Citic
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By analyzing existing cross correlation between Fuda Alloy Materials and China Citic Bank, you can compare the effects of market volatilities on Fuda Alloy and China Citic 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 Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and China Citic.
Diversification Opportunities for Fuda Alloy and China Citic
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fuda and China is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic 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 Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and China Citic go up and down completely randomly.
Pair Corralation between Fuda Alloy and China Citic
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 1.43 times more return on investment than China Citic. However, Fuda Alloy is 1.43 times more volatile than China Citic Bank. It trades about 0.05 of its potential returns per unit of risk. China Citic Bank is currently generating about -0.01 per unit of risk. If you would invest 1,110 in Fuda Alloy Materials on October 14, 2024 and sell it today you would earn a total of 230.00 from holding Fuda Alloy Materials or generate 20.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. China Citic Bank
Performance |
| Timeline |
| Fuda Alloy Materials |
| China Citic Bank |
Fuda Alloy and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and China Citic
The main advantage of trading using opposite Fuda Alloy and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, China Citic 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 Citic will offset losses from the drop in China Citic's long position.| Fuda Alloy vs. Holitech Technology Co | Fuda Alloy vs. Tongling Nonferrous Metals | Fuda Alloy vs. Kuangda Technology Group | Fuda Alloy vs. China Aluminum International |
| China Citic vs. Fuda Alloy Materials | China Citic vs. China Building Material | China Citic vs. Sanbo Hospital Management | China Citic vs. King Strong New Material |
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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