Correlation Between Fu Burg and Kwong Fong
Can any of the company-specific risk be diversified away by investing in both Fu Burg and Kwong Fong 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 Fu Burg and Kwong Fong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fu Burg Industrial and Kwong Fong Industries, you can compare the effects of market volatilities on Fu Burg and Kwong Fong 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 Fu Burg with a short position of Kwong Fong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fu Burg and Kwong Fong.
Diversification Opportunities for Fu Burg and Kwong Fong
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between 8929 and Kwong is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fu Burg Industrial and Kwong Fong Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kwong Fong Industries and Fu Burg 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 Fu Burg Industrial are associated (or correlated) with Kwong Fong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kwong Fong Industries has no effect on the direction of Fu Burg i.e., Fu Burg and Kwong Fong go up and down completely randomly.
Pair Corralation between Fu Burg and Kwong Fong
Assuming the 90 days trading horizon Fu Burg Industrial is expected to generate 3.87 times more return on investment than Kwong Fong. However, Fu Burg is 3.87 times more volatile than Kwong Fong Industries. It trades about 0.14 of its potential returns per unit of risk. Kwong Fong Industries is currently generating about 0.1 per unit of risk. If you would invest 2,390 in Fu Burg Industrial on September 12, 2024 and sell it today you would earn a total of 365.00 from holding Fu Burg Industrial or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fu Burg Industrial vs. Kwong Fong Industries
Performance |
| Timeline |
| Fu Burg Industrial |
| Kwong Fong Industries |
Fu Burg and Kwong Fong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fu Burg and Kwong Fong
The main advantage of trading using opposite Fu Burg and Kwong Fong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fu Burg position performs unexpectedly, Kwong Fong 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 Kwong Fong will offset losses from the drop in Kwong Fong's long position.| Fu Burg vs. Ruentex Development Co | Fu Burg vs. Symtek Automation Asia | Fu Burg vs. CTCI Corp | Fu Burg vs. Information Technology Total |
| Kwong Fong vs. Hannstar Display Corp | Kwong Fong vs. ALFORMER Industrial Co | Kwong Fong vs. Sunspring Metal Corp | Kwong Fong vs. Silicon Power Computer |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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