Correlation Between FUYO GENERAL and ATRESMEDIA
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA, you can compare the effects of market volatilities on FUYO GENERAL and ATRESMEDIA 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 ATRESMEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and ATRESMEDIA.
Diversification Opportunities for FUYO GENERAL and ATRESMEDIA
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FUYO and ATRESMEDIA is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and ATRESMEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRESMEDIA 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 ATRESMEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRESMEDIA has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and ATRESMEDIA go up and down completely randomly.
Pair Corralation between FUYO GENERAL and ATRESMEDIA
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 1.85 times more return on investment than ATRESMEDIA. However, FUYO GENERAL is 1.85 times more volatile than ATRESMEDIA. It trades about 0.26 of its potential returns per unit of risk. ATRESMEDIA is currently generating about 0.27 per unit of risk. If you would invest 6,450 in FUYO GENERAL LEASE on September 1, 2024 and sell it today you would earn a total of 500.00 from holding FUYO GENERAL LEASE or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. ATRESMEDIA
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| ATRESMEDIA |
FUYO GENERAL and ATRESMEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and ATRESMEDIA
The main advantage of trading using opposite FUYO GENERAL and ATRESMEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, ATRESMEDIA 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 ATRESMEDIA will offset losses from the drop in ATRESMEDIA's long position.| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. NMI Holdings | FUYO GENERAL vs. Origin Agritech |
| ATRESMEDIA vs. Singapore Reinsurance | ATRESMEDIA vs. Safety Insurance Group | ATRESMEDIA vs. Direct Line Insurance | ATRESMEDIA vs. LIFENET INSURANCE CO |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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