Correlation Between FUYO GENERAL and SAFEROADS HLDGS
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and SAFEROADS HLDGS 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 SAFEROADS HLDGS 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 SAFEROADS HLDGS, you can compare the effects of market volatilities on FUYO GENERAL and SAFEROADS HLDGS 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 SAFEROADS HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and SAFEROADS HLDGS.
Diversification Opportunities for FUYO GENERAL and SAFEROADS HLDGS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FUYO and SAFEROADS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and SAFEROADS HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAFEROADS HLDGS 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 SAFEROADS HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAFEROADS HLDGS has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and SAFEROADS HLDGS go up and down completely randomly.
Pair Corralation between FUYO GENERAL and SAFEROADS HLDGS
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 2.51 times more return on investment than SAFEROADS HLDGS. However, FUYO GENERAL is 2.51 times more volatile than SAFEROADS HLDGS. It trades about 0.02 of its potential returns per unit of risk. SAFEROADS HLDGS is currently generating about -0.04 per unit of risk. If you would invest 6,350 in FUYO GENERAL LEASE on November 5, 2024 and sell it today you would earn a total of 750.00 from holding FUYO GENERAL LEASE or generate 11.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. SAFEROADS HLDGS
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| SAFEROADS HLDGS |
FUYO GENERAL and SAFEROADS HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and SAFEROADS HLDGS
The main advantage of trading using opposite FUYO GENERAL and SAFEROADS HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, SAFEROADS HLDGS 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 SAFEROADS HLDGS will offset losses from the drop in SAFEROADS HLDGS's long position.| FUYO GENERAL vs. GLG LIFE TECH | FUYO GENERAL vs. AAC TECHNOLOGHLDGADR | FUYO GENERAL vs. VELA TECHNOLPLC LS 0001 | FUYO GENERAL vs. Amkor Technology |
| SAFEROADS HLDGS vs. Haier Smart Home | SAFEROADS HLDGS vs. Acadia Healthcare | SAFEROADS HLDGS vs. Brockhaus Capital Management | SAFEROADS HLDGS vs. Addus HomeCare |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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