Correlation Between Fuhkbx and All Asset
Can any of the company-specific risk be diversified away by investing in both Fuhkbx and All Asset 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 All Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuhkbx and All Asset Fund, you can compare the effects of market volatilities on Fuhkbx and All Asset 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 All Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuhkbx and All Asset.
Diversification Opportunities for Fuhkbx and All Asset
Poor diversification
The 3 months correlation between Fuhkbx and All is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fuhkbx and All Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Asset Fund 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 All Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Asset Fund has no effect on the direction of Fuhkbx i.e., Fuhkbx and All Asset go up and down completely randomly.
Pair Corralation between Fuhkbx and All Asset
Assuming the 90 days trading horizon Fuhkbx is expected to generate 1.76 times more return on investment than All Asset. However, Fuhkbx is 1.76 times more volatile than All Asset Fund. It trades about 0.32 of its potential returns per unit of risk. All Asset Fund is currently generating about 0.14 per unit of risk. If you would invest 973.00 in Fuhkbx on October 26, 2024 and sell it today you would earn a total of 33.00 from holding Fuhkbx or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Fuhkbx vs. All Asset Fund
Performance |
| Timeline |
| Fuhkbx |
| All Asset Fund |
Fuhkbx and All Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuhkbx and All Asset
The main advantage of trading using opposite Fuhkbx and All Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuhkbx position performs unexpectedly, All Asset 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 All Asset will offset losses from the drop in All Asset's long position.| Fuhkbx vs. Delaware Investments Ultrashort | Fuhkbx vs. Cmg Ultra Short | Fuhkbx vs. Transam Short Term Bond | Fuhkbx vs. Aamhimco Short Duration |
| All Asset vs. Furyax | All Asset vs. Small Pany Growth | All Asset vs. Fuhkbx | All Asset vs. Arrow Managed Futures |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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