Correlation Between Femasys and Guangdong Investment
Can any of the company-specific risk be diversified away by investing in both Femasys and Guangdong Investment 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 Femasys and Guangdong Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and Guangdong Investment Limited, you can compare the effects of market volatilities on Femasys and Guangdong Investment 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 Femasys with a short position of Guangdong Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Guangdong Investment.
Diversification Opportunities for Femasys and Guangdong Investment
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Femasys and Guangdong is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Guangdong Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Investment and Femasys 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 Femasys are associated (or correlated) with Guangdong Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Investment has no effect on the direction of Femasys i.e., Femasys and Guangdong Investment go up and down completely randomly.
Pair Corralation between Femasys and Guangdong Investment
Given the investment horizon of 90 days Femasys is expected to generate 2.48 times more return on investment than Guangdong Investment. However, Femasys is 2.48 times more volatile than Guangdong Investment Limited. It trades about 0.04 of its potential returns per unit of risk. Guangdong Investment Limited is currently generating about 0.03 per unit of risk. If you would invest 108.00 in Femasys on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Femasys or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Femasys vs. Guangdong Investment Limited
Performance |
| Timeline |
| Femasys |
| Guangdong Investment |
Femasys and Guangdong Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and Guangdong Investment
The main advantage of trading using opposite Femasys and Guangdong Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, Guangdong Investment 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 Guangdong Investment will offset losses from the drop in Guangdong Investment's long position.| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
| Guangdong Investment vs. Essential Utilities | Guangdong Investment vs. Anhui Conch Cement | Guangdong Investment vs. Endesa SA ADR | Guangdong Investment vs. HUMANA INC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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