Correlation Between FUYO GENERAL and GRENKELEASING Dusseldorf
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf, you can compare the effects of market volatilities on FUYO GENERAL and GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and GRENKELEASING Dusseldorf.
Diversification Opportunities for FUYO GENERAL and GRENKELEASING Dusseldorf
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FUYO and GRENKELEASING is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Dusseldorf has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and GRENKELEASING Dusseldorf go up and down completely randomly.
Pair Corralation between FUYO GENERAL and GRENKELEASING Dusseldorf
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to under-perform the GRENKELEASING Dusseldorf. But the stock apears to be less risky and, when comparing its historical volatility, FUYO GENERAL LEASE is 1.36 times less risky than GRENKELEASING Dusseldorf. The stock trades about -0.03 of its potential returns per unit of risk. The GRENKELEASING Dusseldorf is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,638 in GRENKELEASING Dusseldorf on October 26, 2024 and sell it today you would earn a total of 36.00 from holding GRENKELEASING Dusseldorf or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. GRENKELEASING Dusseldorf
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| GRENKELEASING Dusseldorf |
FUYO GENERAL and GRENKELEASING Dusseldorf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and GRENKELEASING Dusseldorf
The main advantage of trading using opposite FUYO GENERAL and GRENKELEASING Dusseldorf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf will offset losses from the drop in GRENKELEASING Dusseldorf's long position.| FUYO GENERAL vs. Haverty Furniture Companies | FUYO GENERAL vs. SCIENCE IN SPORT | FUYO GENERAL vs. American Homes 4 | FUYO GENERAL vs. bet at home AG |
| GRENKELEASING Dusseldorf vs. THAI BEVERAGE | GRENKELEASING Dusseldorf vs. ON SEMICONDUCTOR | GRENKELEASING Dusseldorf vs. High Liner Foods | GRENKELEASING Dusseldorf vs. Tyson Foods |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world |