Correlation Between FUYO GENERAL and Imperial Metals
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and Imperial Metals 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 Imperial Metals 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 Imperial Metals, you can compare the effects of market volatilities on FUYO GENERAL and Imperial Metals 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 Imperial Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Imperial Metals.
Diversification Opportunities for FUYO GENERAL and Imperial Metals
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FUYO and Imperial is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and Imperial Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imperial Metals 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 Imperial Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imperial Metals has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and Imperial Metals go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Imperial Metals
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to under-perform the Imperial Metals. But the stock apears to be less risky and, when comparing its historical volatility, FUYO GENERAL LEASE is 2.03 times less risky than Imperial Metals. The stock trades about 0.0 of its potential returns per unit of risk. The Imperial Metals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 123.00 in Imperial Metals on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Imperial Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. Imperial Metals
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Imperial Metals |
FUYO GENERAL and Imperial Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Imperial Metals
The main advantage of trading using opposite FUYO GENERAL and Imperial Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, Imperial Metals 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 Imperial Metals will offset losses from the drop in Imperial Metals' long position.| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. SIVERS SEMICONDUCTORS AB | FUYO GENERAL vs. Norsk Hydro ASA |
| Imperial Metals vs. Southern Copper | Imperial Metals vs. Sandfire Resources Limited | Imperial Metals vs. Superior Plus Corp | Imperial Metals vs. NMI Holdings |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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