Correlation Between Fusion Fuel and China Intel
Can any of the company-specific risk be diversified away by investing in both Fusion Fuel and China Intel 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 Fusion Fuel and China Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fusion Fuel Green and China Intel Info, you can compare the effects of market volatilities on Fusion Fuel and China Intel 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 Fusion Fuel with a short position of China Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fusion Fuel and China Intel.
Diversification Opportunities for Fusion Fuel and China Intel
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fusion and China is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Fuel Green and China Intel Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Intel Info and Fusion Fuel 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 Fusion Fuel Green are associated (or correlated) with China Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Intel Info has no effect on the direction of Fusion Fuel i.e., Fusion Fuel and China Intel go up and down completely randomly.
Pair Corralation between Fusion Fuel and China Intel
Assuming the 90 days horizon Fusion Fuel is expected to generate 8.39 times less return on investment than China Intel. But when comparing it to its historical volatility, Fusion Fuel Green is 2.86 times less risky than China Intel. It trades about 0.03 of its potential returns per unit of risk. China Intel Info is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2.70 in China Intel Info on September 4, 2024 and sell it today you would lose (2.00) from holding China Intel Info or give up 74.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fusion Fuel Green vs. China Intel Info
Performance |
| Timeline |
| Fusion Fuel Green |
| China Intel Info |
Fusion Fuel and China Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fusion Fuel and China Intel
The main advantage of trading using opposite Fusion Fuel and China Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fusion Fuel position performs unexpectedly, China Intel 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 China Intel will offset losses from the drop in China Intel's long position.| Fusion Fuel vs. Fusion Fuel Green | Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Eos Energy Enterprises | Fusion Fuel vs. CuriosityStream |
| China Intel vs. Alternus Energy Group | China Intel vs. First National Energy | China Intel vs. Tokyo Electric Power | China Intel vs. Clearway Energy Class |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |