Correlation Between FUYO GENERAL and Transport International
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and Transport International 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 Transport International 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 Transport International Holdings, you can compare the effects of market volatilities on FUYO GENERAL and Transport International 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 Transport International. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Transport International.
Diversification Opportunities for FUYO GENERAL and Transport International
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FUYO and Transport is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and Transport International Holdin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport International 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 Transport International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport International has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and Transport International go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Transport International
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to under-perform the Transport International. But the stock apears to be less risky and, when comparing its historical volatility, FUYO GENERAL LEASE is 3.71 times less risky than Transport International. The stock trades about -0.06 of its potential returns per unit of risk. The Transport International Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 55.00 in Transport International Holdings on August 27, 2024 and sell it today you would earn a total of 40.00 from holding Transport International Holdings or generate 72.73% 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. Transport International Holdin
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Transport International |
FUYO GENERAL and Transport International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Transport International
The main advantage of trading using opposite FUYO GENERAL and Transport International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, Transport International 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 Transport International will offset losses from the drop in Transport International's long position.| FUYO GENERAL vs. Compugroup Medical SE | FUYO GENERAL vs. MeVis Medical Solutions | FUYO GENERAL vs. Advanced Medical Solutions | FUYO GENERAL vs. Japan Medical Dynamic |
| Transport International vs. FUYO GENERAL LEASE | Transport International vs. Global Ship Lease | Transport International vs. LION ONE METALS | Transport International vs. Evolution Mining Limited |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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