Correlation Between China Intel and Fusion Fuel
Can any of the company-specific risk be diversified away by investing in both China Intel and Fusion Fuel 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 China Intel and Fusion Fuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Intel Info and Fusion Fuel Green, you can compare the effects of market volatilities on China Intel and Fusion Fuel 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 China Intel with a short position of Fusion Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Intel and Fusion Fuel.
Diversification Opportunities for China Intel and Fusion Fuel
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Fusion is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Intel Info and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green and China Intel 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 China Intel Info are associated (or correlated) with Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of China Intel i.e., China Intel and Fusion Fuel go up and down completely randomly.
Pair Corralation between China Intel and Fusion Fuel
Given the investment horizon of 90 days China Intel Info is expected to generate 2.5 times more return on investment than Fusion Fuel. However, China Intel is 2.5 times more volatile than Fusion Fuel Green. It trades about 0.09 of its potential returns per unit of risk. Fusion Fuel Green is currently generating about 0.0 per unit of risk. If you would invest 1.90 in China Intel Info on September 3, 2024 and sell it today you would lose (1.30) from holding China Intel Info or give up 68.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Intel Info vs. Fusion Fuel Green
Performance |
| Timeline |
| China Intel Info |
| Fusion Fuel Green |
China Intel and Fusion Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Intel and Fusion Fuel
The main advantage of trading using opposite China Intel and Fusion Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Intel position performs unexpectedly, Fusion Fuel 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 Fusion Fuel will offset losses from the drop in Fusion Fuel's long position.| China Intel vs. Fusion Fuel Green | China Intel vs. Advent Technologies Holdings | China Intel vs. Fluence Energy | China Intel vs. Altus Power |
| Fusion Fuel vs. Fusion Fuel Green | Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Eos Energy Enterprises | Fusion Fuel vs. CuriosityStream |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| 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 | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |