Correlation Between Chuangs China and Fuji Media
Can any of the company-specific risk be diversified away by investing in both Chuangs China and Fuji Media 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 Chuangs China and Fuji Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and Fuji Media Holdings, you can compare the effects of market volatilities on Chuangs China and Fuji Media 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 Chuangs China with a short position of Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Fuji Media.
Diversification Opportunities for Chuangs China and Fuji Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chuangs and Fuji is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings and Chuangs China 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 Chuangs China Investments are associated (or correlated) with Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of Chuangs China i.e., Chuangs China and Fuji Media go up and down completely randomly.
Pair Corralation between Chuangs China and Fuji Media
If you would invest 1.00 in Chuangs China Investments on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Chuangs China Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. Fuji Media Holdings
Performance |
| Timeline |
| Chuangs China Investments |
| Fuji Media Holdings |
Chuangs China and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and Fuji Media
The main advantage of trading using opposite Chuangs China and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, Fuji Media 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| Chuangs China vs. FIREWEED METALS P | Chuangs China vs. ALBIS LEASING AG | Chuangs China vs. Treasury Wine Estates | Chuangs China vs. GREENX METALS LTD |
| Fuji Media vs. Live Nation Entertainment | Fuji Media vs. Dolby Laboratories | Fuji Media vs. CTS Eventim AG | Fuji Media vs. Toho Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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