Correlation Between CRAWFORD A and Fanhua
Can any of the company-specific risk be diversified away by investing in both CRAWFORD A and Fanhua 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 CRAWFORD A and Fanhua into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CRAWFORD A NV and Fanhua Inc, you can compare the effects of market volatilities on CRAWFORD A and Fanhua 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 CRAWFORD A with a short position of Fanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRAWFORD A and Fanhua.
Diversification Opportunities for CRAWFORD A and Fanhua
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CRAWFORD and Fanhua is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding CRAWFORD A NV and Fanhua Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fanhua Inc and CRAWFORD A 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 CRAWFORD A NV are associated (or correlated) with Fanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fanhua Inc has no effect on the direction of CRAWFORD A i.e., CRAWFORD A and Fanhua go up and down completely randomly.
Pair Corralation between CRAWFORD A and Fanhua
Assuming the 90 days trading horizon CRAWFORD A NV is expected to generate 0.6 times more return on investment than Fanhua. However, CRAWFORD A NV is 1.67 times less risky than Fanhua. It trades about 0.06 of its potential returns per unit of risk. Fanhua Inc is currently generating about -0.08 per unit of risk. If you would invest 554.00 in CRAWFORD A NV on October 26, 2024 and sell it today you would earn a total of 536.00 from holding CRAWFORD A NV or generate 96.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CRAWFORD A NV vs. Fanhua Inc
Performance |
| Timeline |
| CRAWFORD A NV |
| Fanhua Inc |
CRAWFORD A and Fanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CRAWFORD A and Fanhua
The main advantage of trading using opposite CRAWFORD A and Fanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRAWFORD A position performs unexpectedly, Fanhua 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 Fanhua will offset losses from the drop in Fanhua's long position.| CRAWFORD A vs. ECHO INVESTMENT ZY | CRAWFORD A vs. Apollo Investment Corp | CRAWFORD A vs. CHEMICAL INDUSTRIES | CRAWFORD A vs. Guangdong Investment Limited |
| Fanhua vs. Westinghouse Air Brake | Fanhua vs. RYANAIR HLDGS ADR | Fanhua vs. CHINA SOUTHN AIR H | Fanhua vs. EAGLE MATERIALS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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