Correlation Between Here Media and Fuquan Capital
Can any of the company-specific risk be diversified away by investing in both Here Media and Fuquan Capital 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 Here Media and Fuquan Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Here Media and Fuquan Capital Management, you can compare the effects of market volatilities on Here Media and Fuquan Capital 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 Here Media with a short position of Fuquan Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Here Media and Fuquan Capital.
Diversification Opportunities for Here Media and Fuquan Capital
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Here and Fuquan is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Here Media and Fuquan Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuquan Capital Management and Here Media 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 Here Media are associated (or correlated) with Fuquan Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuquan Capital Management has no effect on the direction of Here Media i.e., Here Media and Fuquan Capital go up and down completely randomly.
Pair Corralation between Here Media and Fuquan Capital
If you would invest 0.01 in Here Media on September 12, 2024 and sell it today you would earn a total of 0.01 from holding Here Media or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Here Media vs. Fuquan Capital Management
Performance |
| Timeline |
| Here Media |
| Fuquan Capital Management |
Here Media and Fuquan Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Here Media and Fuquan Capital
The main advantage of trading using opposite Here Media and Fuquan Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Here Media position performs unexpectedly, Fuquan Capital 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 Fuquan Capital will offset losses from the drop in Fuquan Capital's long position.| Here Media vs. FP Newspapers | Here Media vs. RCS MediaGroup SpA | Here Media vs. Scholastic | Here Media vs. Lee Enterprises Incorporated |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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