Correlation Between CviLux Corp and FineMat Applied
Can any of the company-specific risk be diversified away by investing in both CviLux Corp and FineMat Applied 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 CviLux Corp and FineMat Applied into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CviLux Corp and FineMat Applied Materials, you can compare the effects of market volatilities on CviLux Corp and FineMat Applied 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 CviLux Corp with a short position of FineMat Applied. Check out your portfolio center. Please also check ongoing floating volatility patterns of CviLux Corp and FineMat Applied.
Diversification Opportunities for CviLux Corp and FineMat Applied
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CviLux and FineMat is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding CviLux Corp and FineMat Applied Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FineMat Applied Materials and CviLux Corp 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 CviLux Corp are associated (or correlated) with FineMat Applied. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FineMat Applied Materials has no effect on the direction of CviLux Corp i.e., CviLux Corp and FineMat Applied go up and down completely randomly.
Pair Corralation between CviLux Corp and FineMat Applied
Assuming the 90 days trading horizon CviLux Corp is expected to generate 0.71 times more return on investment than FineMat Applied. However, CviLux Corp is 1.4 times less risky than FineMat Applied. It trades about 0.06 of its potential returns per unit of risk. FineMat Applied Materials is currently generating about 0.03 per unit of risk. If you would invest 3,055 in CviLux Corp on August 30, 2024 and sell it today you would earn a total of 1,945 from holding CviLux Corp or generate 63.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
CviLux Corp vs. FineMat Applied Materials
Performance |
| Timeline |
| CviLux Corp |
| FineMat Applied Materials |
CviLux Corp and FineMat Applied Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CviLux Corp and FineMat Applied
The main advantage of trading using opposite CviLux Corp and FineMat Applied positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CviLux Corp position performs unexpectedly, FineMat Applied 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 FineMat Applied will offset losses from the drop in FineMat Applied's long position.| CviLux Corp vs. Yulon Motor Co | CviLux Corp vs. Far Eastern Department | CviLux Corp vs. China Steel Corp | CviLux Corp vs. Chang Hwa Commercial |
| FineMat Applied vs. Hon Hai Precision | FineMat Applied vs. Delta Electronics | FineMat Applied vs. LARGAN Precision Co | FineMat Applied vs. E Ink Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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