Correlation Between Fuel Tech and Eestech
Can any of the company-specific risk be diversified away by investing in both Fuel Tech and Eestech 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 Fuel Tech and Eestech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuel Tech and Eestech, you can compare the effects of market volatilities on Fuel Tech and Eestech 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 Fuel Tech with a short position of Eestech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuel Tech and Eestech.
Diversification Opportunities for Fuel Tech and Eestech
Very good diversification
The 3 months correlation between Fuel and Eestech is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fuel Tech and Eestech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eestech and Fuel Tech 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 Fuel Tech are associated (or correlated) with Eestech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eestech has no effect on the direction of Fuel Tech i.e., Fuel Tech and Eestech go up and down completely randomly.
Pair Corralation between Fuel Tech and Eestech
If you would invest 104.00 in Fuel Tech on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Fuel Tech or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuel Tech vs. Eestech
Performance |
| Timeline |
| Fuel Tech |
| Eestech |
Fuel Tech and Eestech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuel Tech and Eestech
The main advantage of trading using opposite Fuel Tech and Eestech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuel Tech position performs unexpectedly, Eestech 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 Eestech will offset losses from the drop in Eestech's long position.| Fuel Tech vs. Genpact Limited | Fuel Tech vs. Broadridge Financial Solutions | Fuel Tech vs. First Advantage Corp | Fuel Tech vs. Franklin Covey |
| Eestech vs. Seychelle Environmtl | Eestech vs. Energy and Water | Eestech vs. One World Universe | Eestech vs. Bion Environmental Technologies |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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