Correlation Between FUYO GENERAL and HEALTHCARE REAL
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and HEALTHCARE REAL 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 HEALTHCARE REAL 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 HEALTHCARE REAL A, you can compare the effects of market volatilities on FUYO GENERAL and HEALTHCARE REAL 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 HEALTHCARE REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and HEALTHCARE REAL.
Diversification Opportunities for FUYO GENERAL and HEALTHCARE REAL
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FUYO and HEALTHCARE is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and HEALTHCARE REAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHCARE REAL A 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 HEALTHCARE REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHCARE REAL A has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and HEALTHCARE REAL go up and down completely randomly.
Pair Corralation between FUYO GENERAL and HEALTHCARE REAL
Assuming the 90 days horizon FUYO GENERAL is expected to generate 1.78 times less return on investment than HEALTHCARE REAL. But when comparing it to its historical volatility, FUYO GENERAL LEASE is 1.08 times less risky than HEALTHCARE REAL. It trades about 0.01 of its potential returns per unit of risk. HEALTHCARE REAL A is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,609 in HEALTHCARE REAL A on August 31, 2024 and sell it today you would earn a total of 111.00 from holding HEALTHCARE REAL A or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. HEALTHCARE REAL A
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| HEALTHCARE REAL A |
FUYO GENERAL and HEALTHCARE REAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and HEALTHCARE REAL
The main advantage of trading using opposite FUYO GENERAL and HEALTHCARE REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, HEALTHCARE REAL 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 HEALTHCARE REAL will offset losses from the drop in HEALTHCARE REAL's long position.| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. NMI Holdings | FUYO GENERAL vs. Origin Agritech |
| HEALTHCARE REAL vs. Apple Inc | HEALTHCARE REAL vs. Apple Inc | HEALTHCARE REAL vs. Apple Inc | HEALTHCARE REAL vs. Apple Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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