Correlation Between Intech Biopharm and Fusheng Precision
Can any of the company-specific risk be diversified away by investing in both Intech Biopharm and Fusheng Precision 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 Intech Biopharm and Fusheng Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intech Biopharm and Fusheng Precision Co, you can compare the effects of market volatilities on Intech Biopharm and Fusheng Precision 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 Intech Biopharm with a short position of Fusheng Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intech Biopharm and Fusheng Precision.
Diversification Opportunities for Intech Biopharm and Fusheng Precision
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intech and Fusheng is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Intech Biopharm and Fusheng Precision Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusheng Precision and Intech Biopharm 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 Intech Biopharm are associated (or correlated) with Fusheng Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusheng Precision has no effect on the direction of Intech Biopharm i.e., Intech Biopharm and Fusheng Precision go up and down completely randomly.
Pair Corralation between Intech Biopharm and Fusheng Precision
Assuming the 90 days trading horizon Intech Biopharm is expected to under-perform the Fusheng Precision. But the stock apears to be less risky and, when comparing its historical volatility, Intech Biopharm is 1.69 times less risky than Fusheng Precision. The stock trades about -0.14 of its potential returns per unit of risk. The Fusheng Precision Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 29,750 in Fusheng Precision Co on September 1, 2024 and sell it today you would earn a total of 1,450 from holding Fusheng Precision Co or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intech Biopharm vs. Fusheng Precision Co
Performance |
| Timeline |
| Intech Biopharm |
| Fusheng Precision |
Intech Biopharm and Fusheng Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intech Biopharm and Fusheng Precision
The main advantage of trading using opposite Intech Biopharm and Fusheng Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intech Biopharm position performs unexpectedly, Fusheng Precision 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 Fusheng Precision will offset losses from the drop in Fusheng Precision's long position.| Intech Biopharm vs. Vanguard International Semiconductor | Intech Biopharm vs. Holtek Semiconductor | Intech Biopharm vs. Davicom Semiconductor | Intech Biopharm vs. Niko Semiconductor Co |
| Fusheng Precision vs. Giant Manufacturing Co | Fusheng Precision vs. Merida Industry Co | Fusheng Precision vs. Johnson Health Tech | Fusheng Precision vs. Power Wind Health |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |