Correlation Between Fuda Alloy and OBiO Technology
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By analyzing existing cross correlation between Fuda Alloy Materials and OBiO Technology Corp, you can compare the effects of market volatilities on Fuda Alloy and OBiO Technology 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 OBiO Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and OBiO Technology.
Diversification Opportunities for Fuda Alloy and OBiO Technology
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fuda and OBiO is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and OBiO Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OBiO Technology Corp 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 OBiO Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OBiO Technology Corp has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and OBiO Technology go up and down completely randomly.
Pair Corralation between Fuda Alloy and OBiO Technology
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 0.74 times more return on investment than OBiO Technology. However, Fuda Alloy Materials is 1.34 times less risky than OBiO Technology. It trades about 0.08 of its potential returns per unit of risk. OBiO Technology Corp is currently generating about 0.02 per unit of risk. If you would invest 1,060 in Fuda Alloy Materials on September 1, 2024 and sell it today you would earn a total of 267.00 from holding Fuda Alloy Materials or generate 25.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. OBiO Technology Corp
Performance |
| Timeline |
| Fuda Alloy Materials |
| OBiO Technology Corp |
Fuda Alloy and OBiO Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and OBiO Technology
The main advantage of trading using opposite Fuda Alloy and OBiO Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, OBiO Technology 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 OBiO Technology will offset losses from the drop in OBiO Technology's long position.| Fuda Alloy vs. Cultural Investment Holdings | Fuda Alloy vs. Gome Telecom Equipment | Fuda Alloy vs. Bus Online Co | Fuda Alloy vs. Holitech Technology Co |
| OBiO Technology vs. Shandong Polymer Biochemicals | OBiO Technology vs. Focus Media Information | OBiO Technology vs. Yingde Greatchem Chemicals | OBiO Technology vs. Harbin Air Conditioning |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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