Correlation Between FibroGen and New Oriental
Can any of the company-specific risk be diversified away by investing in both FibroGen and New Oriental 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 FibroGen and New Oriental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibroGen and New Oriental Education, you can compare the effects of market volatilities on FibroGen and New Oriental 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 FibroGen with a short position of New Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibroGen and New Oriental.
Diversification Opportunities for FibroGen and New Oriental
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FibroGen and New is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FibroGen and New Oriental Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Oriental Education and FibroGen 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 FibroGen are associated (or correlated) with New Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Oriental Education has no effect on the direction of FibroGen i.e., FibroGen and New Oriental go up and down completely randomly.
Pair Corralation between FibroGen and New Oriental
Assuming the 90 days trading horizon FibroGen is expected to generate 18.89 times more return on investment than New Oriental. However, FibroGen is 18.89 times more volatile than New Oriental Education. It trades about 0.26 of its potential returns per unit of risk. New Oriental Education is currently generating about -0.03 per unit of risk. If you would invest 640.00 in FibroGen on August 29, 2024 and sell it today you would earn a total of 154.00 from holding FibroGen or generate 24.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FibroGen vs. New Oriental Education
Performance |
| Timeline |
| FibroGen |
| New Oriental Education |
FibroGen and New Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibroGen and New Oriental
The main advantage of trading using opposite FibroGen and New Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibroGen position performs unexpectedly, New Oriental 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 New Oriental will offset losses from the drop in New Oriental's long position.| FibroGen vs. Vertex Pharmaceuticals | FibroGen vs. Bristol Myers Squibb | FibroGen vs. The Select Sector | FibroGen vs. Promotora y Operadora |
| New Oriental vs. The Select Sector | New Oriental vs. SPDR Series Trust | New Oriental vs. FibroGen | New Oriental vs. iShares Trust |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |