Correlation Between Fuda Alloy and Epoxy Base
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By analyzing existing cross correlation between Fuda Alloy Materials and Epoxy Base Electronic, you can compare the effects of market volatilities on Fuda Alloy and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Epoxy Base.
Diversification Opportunities for Fuda Alloy and Epoxy Base
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fuda and Epoxy is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Epoxy Base go up and down completely randomly.
Pair Corralation between Fuda Alloy and Epoxy Base
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 1.03 times more return on investment than Epoxy Base. However, Fuda Alloy is 1.03 times more volatile than Epoxy Base Electronic. It trades about 0.26 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.03 per unit of risk. If you would invest 1,288 in Fuda Alloy Materials on October 29, 2024 and sell it today you would earn a total of 245.00 from holding Fuda Alloy Materials or generate 19.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Epoxy Base Electronic
Performance |
| Timeline |
| Fuda Alloy Materials |
| Epoxy Base Electronic |
Fuda Alloy and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Epoxy Base
The main advantage of trading using opposite Fuda Alloy and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Fuda Alloy vs. Gansu Huangtai Wine marketing | Fuda Alloy vs. Linewell Software Co | Fuda Alloy vs. China National Software | Fuda Alloy vs. Dareway Software Co |
| Epoxy Base vs. Xizi Clean Energy | Epoxy Base vs. Ziel Home Furnishing | Epoxy Base vs. Zoy Home Furnishing | Epoxy Base vs. Shandong Longquan Pipeline |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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