Correlation Between FUYO GENERAL and CSL
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and CSL 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 CSL 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 CSL Limited, you can compare the effects of market volatilities on FUYO GENERAL and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and CSL.
Diversification Opportunities for FUYO GENERAL and CSL
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between FUYO and CSL is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and CSL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL Limited 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL Limited has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and CSL go up and down completely randomly.
Pair Corralation between FUYO GENERAL and CSL
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 0.94 times more return on investment than CSL. However, FUYO GENERAL LEASE is 1.06 times less risky than CSL. It trades about 0.11 of its potential returns per unit of risk. CSL Limited is currently generating about -0.09 per unit of risk. If you would invest 6,700 in FUYO GENERAL LEASE on September 12, 2024 and sell it today you would earn a total of 200.00 from holding FUYO GENERAL LEASE or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. CSL Limited
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| CSL Limited |
FUYO GENERAL and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and CSL
The main advantage of trading using opposite FUYO GENERAL and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| FUYO GENERAL vs. ADRIATIC METALS LS 013355 | FUYO GENERAL vs. ARDAGH METAL PACDL 0001 | FUYO GENERAL vs. AGRICULTBK HADR25 YC | FUYO GENERAL vs. Sumitomo Mitsui Construction |
| CSL vs. ARDAGH METAL PACDL 0001 | CSL vs. FUYO GENERAL LEASE | CSL vs. LION ONE METALS | CSL vs. Lion One Metals |
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.
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