Correlation Between Fuda Alloy and Guotai Epoint
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By analyzing existing cross correlation between Fuda Alloy Materials and Guotai Epoint Software, you can compare the effects of market volatilities on Fuda Alloy and Guotai Epoint 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 Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Guotai Epoint.
Diversification Opportunities for Fuda Alloy and Guotai Epoint
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fuda and Guotai is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software 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 Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Guotai Epoint go up and down completely randomly.
Pair Corralation between Fuda Alloy and Guotai Epoint
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 1.73 times more return on investment than Guotai Epoint. However, Fuda Alloy is 1.73 times more volatile than Guotai Epoint Software. It trades about 0.02 of its potential returns per unit of risk. Guotai Epoint Software is currently generating about -0.3 per unit of risk. If you would invest 1,361 in Fuda Alloy Materials on October 16, 2024 and sell it today you would earn a total of 5.00 from holding Fuda Alloy Materials or generate 0.37% 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. Guotai Epoint Software
Performance |
| Timeline |
| Fuda Alloy Materials |
| Guotai Epoint Software |
Fuda Alloy and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Guotai Epoint
The main advantage of trading using opposite Fuda Alloy and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint's long position.| Fuda Alloy vs. Shenzhen MYS Environmental | Fuda Alloy vs. Tianjin Capital Environmental | Fuda Alloy vs. Anyang Iron Steel | Fuda Alloy vs. Lecron Energy Saving |
| Guotai Epoint vs. China Life Insurance | Guotai Epoint vs. Cinda Securities Co | Guotai Epoint vs. Piotech Inc A | Guotai Epoint vs. Dongxing Sec 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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