Correlation Between Dufu Tech and CB Industrial
Can any of the company-specific risk be diversified away by investing in both Dufu Tech and CB Industrial 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 Dufu Tech and CB Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dufu Tech Corp and CB Industrial Product, you can compare the effects of market volatilities on Dufu Tech and CB Industrial 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 Dufu Tech with a short position of CB Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dufu Tech and CB Industrial.
Diversification Opportunities for Dufu Tech and CB Industrial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dufu and 7076 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dufu Tech Corp and CB Industrial Product in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CB Industrial Product and Dufu Tech 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 Dufu Tech Corp are associated (or correlated) with CB Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CB Industrial Product has no effect on the direction of Dufu Tech i.e., Dufu Tech and CB Industrial go up and down completely randomly.
Pair Corralation between Dufu Tech and CB Industrial
Assuming the 90 days trading horizon Dufu Tech is expected to generate 4.44 times less return on investment than CB Industrial. In addition to that, Dufu Tech is 1.47 times more volatile than CB Industrial Product. It trades about 0.01 of its total potential returns per unit of risk. CB Industrial Product is currently generating about 0.04 per unit of volatility. If you would invest 117.00 in CB Industrial Product on August 24, 2024 and sell it today you would earn a total of 16.00 from holding CB Industrial Product or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
Dufu Tech Corp vs. CB Industrial Product
Performance |
| Timeline |
| Dufu Tech Corp |
| CB Industrial Product |
Dufu Tech and CB Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dufu Tech and CB Industrial
The main advantage of trading using opposite Dufu Tech and CB Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dufu Tech position performs unexpectedly, CB Industrial 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 CB Industrial will offset losses from the drop in CB Industrial's long position.| Dufu Tech vs. Apollo Food Holdings | Dufu Tech vs. IHH Healthcare Bhd | Dufu Tech vs. YTL Hospitality REIT | Dufu Tech vs. Petronas Chemicals Group |
| CB Industrial vs. Greatech Technology Bhd | CB Industrial vs. Uwc Bhd | CB Industrial vs. Genetec Technology Bhd | CB Industrial vs. PIE Industrial Bhd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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