Correlation Between Haier Smart and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both Haier Smart and FUYO GENERAL 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 Haier Smart and FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and FUYO GENERAL LEASE, you can compare the effects of market volatilities on Haier Smart and FUYO GENERAL 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 Haier Smart with a short position of FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and FUYO GENERAL.
Diversification Opportunities for Haier Smart and FUYO GENERAL
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haier and FUYO is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE and Haier Smart 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 Haier Smart Home are associated (or correlated) with FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of Haier Smart i.e., Haier Smart and FUYO GENERAL go up and down completely randomly.
Pair Corralation between Haier Smart and FUYO GENERAL
Assuming the 90 days trading horizon Haier Smart Home is expected to generate 1.61 times more return on investment than FUYO GENERAL. However, Haier Smart is 1.61 times more volatile than FUYO GENERAL LEASE. It trades about 0.12 of its potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about -0.02 per unit of risk. If you would invest 151.00 in Haier Smart Home on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Haier Smart Home or generate 16.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| Haier Smart Home |
| FUYO GENERAL LEASE |
Haier Smart and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and FUYO GENERAL
The main advantage of trading using opposite Haier Smart and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| Haier Smart vs. Sixt Leasing SE | Haier Smart vs. ALGOMA STEEL GROUP | Haier Smart vs. Tianjin Capital Environmental | Haier Smart vs. Perma Fix Environmental Services |
| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. Ashtead Group plc | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Sixt SE |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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