Correlation Between Fbanjx and Fuhkbx
Can any of the company-specific risk be diversified away by investing in both Fbanjx and Fuhkbx 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 Fbanjx and Fuhkbx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fbanjx and Fuhkbx, you can compare the effects of market volatilities on Fbanjx and Fuhkbx 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 Fbanjx with a short position of Fuhkbx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fbanjx and Fuhkbx.
Diversification Opportunities for Fbanjx and Fuhkbx
Very weak diversification
The 3 months correlation between Fbanjx and Fuhkbx is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fbanjx and Fuhkbx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuhkbx and Fbanjx 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 Fbanjx are associated (or correlated) with Fuhkbx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuhkbx has no effect on the direction of Fbanjx i.e., Fbanjx and Fuhkbx go up and down completely randomly.
Pair Corralation between Fbanjx and Fuhkbx
Assuming the 90 days trading horizon Fbanjx is expected to generate 1.02 times more return on investment than Fuhkbx. However, Fbanjx is 1.02 times more volatile than Fuhkbx. It trades about 0.15 of its potential returns per unit of risk. Fuhkbx is currently generating about 0.14 per unit of risk. If you would invest 957.00 in Fbanjx on November 4, 2024 and sell it today you would earn a total of 19.00 from holding Fbanjx or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fbanjx vs. Fuhkbx
Performance |
| Timeline |
| Fbanjx |
| Fuhkbx |
Fbanjx and Fuhkbx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fbanjx and Fuhkbx
The main advantage of trading using opposite Fbanjx and Fuhkbx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fbanjx position performs unexpectedly, Fuhkbx 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 Fuhkbx will offset losses from the drop in Fuhkbx's long position.| Fbanjx vs. Blackstone Secured Lending | Fbanjx vs. Davis Financial Fund | Fbanjx vs. John Hancock Financial | Fbanjx vs. Financial Industries Fund |
| Fuhkbx vs. Federated Emerging Market | Fuhkbx vs. Franklin Emerging Market | Fuhkbx vs. Vy Jpmorgan Emerging | Fuhkbx vs. Investec Emerging Markets |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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