Correlation Between Fuhkbx and Ftufox
Can any of the company-specific risk be diversified away by investing in both Fuhkbx and Ftufox 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 Fuhkbx and Ftufox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuhkbx and Ftufox, you can compare the effects of market volatilities on Fuhkbx and Ftufox 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 Fuhkbx with a short position of Ftufox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuhkbx and Ftufox.
Diversification Opportunities for Fuhkbx and Ftufox
Weak diversification
The 3 months correlation between Fuhkbx and Ftufox is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fuhkbx and Ftufox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftufox and Fuhkbx 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 Fuhkbx are associated (or correlated) with Ftufox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftufox has no effect on the direction of Fuhkbx i.e., Fuhkbx and Ftufox go up and down completely randomly.
Pair Corralation between Fuhkbx and Ftufox
Assuming the 90 days trading horizon Fuhkbx is expected to generate 4.88 times more return on investment than Ftufox. However, Fuhkbx is 4.88 times more volatile than Ftufox. It trades about 0.14 of its potential returns per unit of risk. Ftufox is currently generating about 0.07 per unit of risk. If you would invest 972.00 in Fuhkbx on November 4, 2024 and sell it today you would earn a total of 18.00 from holding Fuhkbx or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuhkbx vs. Ftufox
Performance |
| Timeline |
| Fuhkbx |
| Ftufox |
Fuhkbx and Ftufox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuhkbx and Ftufox
The main advantage of trading using opposite Fuhkbx and Ftufox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuhkbx position performs unexpectedly, Ftufox 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 Ftufox will offset losses from the drop in Ftufox's long position.| Fuhkbx vs. Federated Emerging Market | Fuhkbx vs. Franklin Emerging Market | Fuhkbx vs. Vy Jpmorgan Emerging | Fuhkbx vs. Investec Emerging Markets |
| Ftufox vs. Ab Small Cap | Ftufox vs. Smallcap Fund Fka | Ftufox vs. Tax Managed Mid Small | Ftufox vs. Glg Intl Small |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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