Correlation Between Flytech Technology and Concraft Holding
Can any of the company-specific risk be diversified away by investing in both Flytech Technology and Concraft Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Flytech Technology and Concraft Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flytech Technology Co and Concraft Holding Co, you can compare the effects of market volatilities on Flytech Technology and Concraft Holding 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 Flytech Technology with a short position of Concraft Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flytech Technology and Concraft Holding.
Diversification Opportunities for Flytech Technology and Concraft Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flytech and Concraft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flytech Technology Co and Concraft Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concraft Holding and Flytech Technology 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 Flytech Technology Co are associated (or correlated) with Concraft Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concraft Holding has no effect on the direction of Flytech Technology i.e., Flytech Technology and Concraft Holding go up and down completely randomly.
Pair Corralation between Flytech Technology and Concraft Holding
Assuming the 90 days trading horizon Flytech Technology Co is expected to under-perform the Concraft Holding. But the stock apears to be less risky and, when comparing its historical volatility, Flytech Technology Co is 1.0 times less risky than Concraft Holding. The stock trades about -0.12 of its potential returns per unit of risk. The Concraft Holding Co is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,670 in Concraft Holding Co on August 27, 2024 and sell it today you would lose (50.00) from holding Concraft Holding Co or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flytech Technology Co vs. Concraft Holding Co
Performance |
| Timeline |
| Flytech Technology |
| Concraft Holding |
Flytech Technology and Concraft Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flytech Technology and Concraft Holding
The main advantage of trading using opposite Flytech Technology and Concraft Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flytech Technology position performs unexpectedly, Concraft Holding 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 Concraft Holding will offset losses from the drop in Concraft Holding's long position.| Flytech Technology vs. Novatek Microelectronics Corp | Flytech Technology vs. Quanta Computer | Flytech Technology vs. United Microelectronics |
| Concraft Holding vs. Advantech Co | Concraft Holding vs. IEI Integration Corp | Concraft Holding vs. Flytech Technology Co | Concraft Holding vs. ADLINK Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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