Correlation Between FUYO GENERAL and CNVISION MEDIA
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and CNVISION MEDIA 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 FUYO GENERAL and CNVISION MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and CNVISION MEDIA, you can compare the effects of market volatilities on FUYO GENERAL and CNVISION MEDIA 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 FUYO GENERAL with a short position of CNVISION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and CNVISION MEDIA.
Diversification Opportunities for FUYO GENERAL and CNVISION MEDIA
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FUYO and CNVISION is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and CNVISION MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNVISION MEDIA and FUYO GENERAL 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 FUYO GENERAL LEASE are associated (or correlated) with CNVISION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNVISION MEDIA has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and CNVISION MEDIA go up and down completely randomly.
Pair Corralation between FUYO GENERAL and CNVISION MEDIA
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 0.55 times more return on investment than CNVISION MEDIA. However, FUYO GENERAL LEASE is 1.81 times less risky than CNVISION MEDIA. It trades about 0.24 of its potential returns per unit of risk. CNVISION MEDIA is currently generating about -0.19 per unit of risk. If you would invest 6,450 in FUYO GENERAL LEASE on August 30, 2024 and sell it today you would earn a total of 450.00 from holding FUYO GENERAL LEASE or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. CNVISION MEDIA
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| CNVISION MEDIA |
FUYO GENERAL and CNVISION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and CNVISION MEDIA
The main advantage of trading using opposite FUYO GENERAL and CNVISION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, CNVISION MEDIA 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 CNVISION MEDIA will offset losses from the drop in CNVISION MEDIA's long position.| FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. SIVERS SEMICONDUCTORS AB | FUYO GENERAL vs. Talanx AG | FUYO GENERAL vs. 2G ENERGY |
| CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Superior Plus Corp | CNVISION MEDIA vs. SIVERS SEMICONDUCTORS AB |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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