Correlation Between Fenbo Holdings and UTime
Can any of the company-specific risk be diversified away by investing in both Fenbo Holdings and UTime 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 Fenbo Holdings and UTime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fenbo Holdings Limited and UTime Limited, you can compare the effects of market volatilities on Fenbo Holdings and UTime 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 Fenbo Holdings with a short position of UTime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fenbo Holdings and UTime.
Diversification Opportunities for Fenbo Holdings and UTime
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fenbo and UTime is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fenbo Holdings Limited and UTime Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTime Limited and Fenbo Holdings 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 Fenbo Holdings Limited are associated (or correlated) with UTime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTime Limited has no effect on the direction of Fenbo Holdings i.e., Fenbo Holdings and UTime go up and down completely randomly.
Pair Corralation between Fenbo Holdings and UTime
Given the investment horizon of 90 days Fenbo Holdings is expected to generate 13.44 times less return on investment than UTime. But when comparing it to its historical volatility, Fenbo Holdings Limited is 1.52 times less risky than UTime. It trades about 0.0 of its potential returns per unit of risk. UTime Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,300 in UTime Limited on September 12, 2024 and sell it today you would lose (2,268) from holding UTime Limited or give up 98.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 52.53% |
| Values | Daily Returns |
Fenbo Holdings Limited vs. UTime Limited
Performance |
| Timeline |
| Fenbo Holdings |
| UTime Limited |
Fenbo Holdings and UTime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fenbo Holdings and UTime
The main advantage of trading using opposite Fenbo Holdings and UTime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fenbo Holdings position performs unexpectedly, UTime 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 UTime will offset losses from the drop in UTime's long position.| Fenbo Holdings vs. EvoAir Holdings | Fenbo Holdings vs. Mind Medicine | Fenbo Holdings vs. Alaska Air Group | Fenbo Holdings vs. Corporacion America Airports |
| UTime vs. VOXX International | UTime vs. Vuzix Corp Cmn | UTime vs. Wearable Devices | UTime vs. Fenbo Holdings Limited |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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