Correlation Between Fusheng Precision and Alexander Marine
Can any of the company-specific risk be diversified away by investing in both Fusheng Precision and Alexander Marine 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 Fusheng Precision and Alexander Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fusheng Precision Co and Alexander Marine Co, you can compare the effects of market volatilities on Fusheng Precision and Alexander Marine 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 Fusheng Precision with a short position of Alexander Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fusheng Precision and Alexander Marine.
Diversification Opportunities for Fusheng Precision and Alexander Marine
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fusheng and Alexander is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fusheng Precision Co and Alexander Marine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexander Marine and Fusheng Precision 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 Fusheng Precision Co are associated (or correlated) with Alexander Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexander Marine has no effect on the direction of Fusheng Precision i.e., Fusheng Precision and Alexander Marine go up and down completely randomly.
Pair Corralation between Fusheng Precision and Alexander Marine
Assuming the 90 days trading horizon Fusheng Precision Co is expected to generate 1.0 times more return on investment than Alexander Marine. However, Fusheng Precision Co is 1.0 times less risky than Alexander Marine. It trades about 0.16 of its potential returns per unit of risk. Alexander Marine Co is currently generating about -0.33 per unit of risk. If you would invest 29,350 in Fusheng Precision Co on August 29, 2024 and sell it today you would earn a total of 1,900 from holding Fusheng Precision Co or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fusheng Precision Co vs. Alexander Marine Co
Performance |
| Timeline |
| Fusheng Precision |
| Alexander Marine |
Fusheng Precision and Alexander Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fusheng Precision and Alexander Marine
The main advantage of trading using opposite Fusheng Precision and Alexander Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fusheng Precision position performs unexpectedly, Alexander Marine 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 Alexander Marine will offset losses from the drop in Alexander Marine's long position.| Fusheng Precision vs. Feng Tay Enterprises | Fusheng Precision vs. Ruentex Materials Co | Fusheng Precision vs. Symtek Automation Asia | Fusheng Precision vs. CTCI Corp |
| Alexander Marine vs. Chung Hsin Electric Machinery | Alexander Marine vs. Andes Technology Corp | Alexander Marine vs. Asia Vital Components | Alexander Marine vs. Fulgent Sun International |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |