Correlation Between Fulgent Sun and Victory New
Can any of the company-specific risk be diversified away by investing in both Fulgent Sun and Victory New 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 Fulgent Sun and Victory New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulgent Sun International and Victory New Materials, you can compare the effects of market volatilities on Fulgent Sun and Victory New 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 Fulgent Sun with a short position of Victory New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulgent Sun and Victory New.
Diversification Opportunities for Fulgent Sun and Victory New
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fulgent and Victory is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fulgent Sun International and Victory New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory New Materials and Fulgent Sun 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 Fulgent Sun International are associated (or correlated) with Victory New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory New Materials has no effect on the direction of Fulgent Sun i.e., Fulgent Sun and Victory New go up and down completely randomly.
Pair Corralation between Fulgent Sun and Victory New
Assuming the 90 days trading horizon Fulgent Sun is expected to generate 1.16 times less return on investment than Victory New. In addition to that, Fulgent Sun is 3.22 times more volatile than Victory New Materials. It trades about 0.12 of its total potential returns per unit of risk. Victory New Materials is currently generating about 0.43 per unit of volatility. If you would invest 857.00 in Victory New Materials on November 28, 2024 and sell it today you would earn a total of 58.00 from holding Victory New Materials or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fulgent Sun International vs. Victory New Materials
Performance |
| Timeline |
| Fulgent Sun International |
| Victory New Materials |
Fulgent Sun and Victory New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulgent Sun and Victory New
The main advantage of trading using opposite Fulgent Sun and Victory New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulgent Sun position performs unexpectedly, Victory New 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 Victory New will offset losses from the drop in Victory New's long position.| Fulgent Sun vs. Feng Tay Enterprises | Fulgent Sun vs. Pou Chen Corp | Fulgent Sun vs. Taiwan Paiho | Fulgent Sun vs. Merida Industry Co |
| Victory New vs. Asia Plastic Recycling | Victory New vs. Hunya Foods Co | Victory New vs. Jinli Group Holdings | Victory New vs. Kwong Fong Industries |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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