Correlation Between Fbc Hldg and Tanke Biosciences
Can any of the company-specific risk be diversified away by investing in both Fbc Hldg and Tanke Biosciences 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 Fbc Hldg and Tanke Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fbc Hldg and Tanke Biosciences, you can compare the effects of market volatilities on Fbc Hldg and Tanke Biosciences 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 Fbc Hldg with a short position of Tanke Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fbc Hldg and Tanke Biosciences.
Diversification Opportunities for Fbc Hldg and Tanke Biosciences
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fbc and Tanke is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fbc Hldg and Tanke Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanke Biosciences and Fbc Hldg 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 Fbc Hldg are associated (or correlated) with Tanke Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanke Biosciences has no effect on the direction of Fbc Hldg i.e., Fbc Hldg and Tanke Biosciences go up and down completely randomly.
Pair Corralation between Fbc Hldg and Tanke Biosciences
Given the investment horizon of 90 days Fbc Hldg is expected to generate 20.0 times more return on investment than Tanke Biosciences. However, Fbc Hldg is 20.0 times more volatile than Tanke Biosciences. It trades about 0.21 of its potential returns per unit of risk. Tanke Biosciences is currently generating about -0.21 per unit of risk. If you would invest 0.00 in Fbc Hldg on August 26, 2024 and sell it today you would earn a total of 0.01 from holding Fbc Hldg or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fbc Hldg vs. Tanke Biosciences
Performance |
| Timeline |
| Fbc Hldg |
| Tanke Biosciences |
Fbc Hldg and Tanke Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fbc Hldg and Tanke Biosciences
The main advantage of trading using opposite Fbc Hldg and Tanke Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fbc Hldg position performs unexpectedly, Tanke Biosciences 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 Tanke Biosciences will offset losses from the drop in Tanke Biosciences' long position.| Fbc Hldg vs. Reitmans Limited | Fbc Hldg vs. Reitmans Limited | Fbc Hldg vs. Lulus Fashion Lounge | Fbc Hldg vs. Duluth Holdings |
| Tanke Biosciences vs. Absolute Health and | Tanke Biosciences vs. China Health Management | Tanke Biosciences vs. Embrace Change Acquisition | Tanke Biosciences vs. TransAKT |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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