Correlation Between Small Pany and Fuhkbx
Can any of the company-specific risk be diversified away by investing in both Small Pany and Fuhkbx 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 Small Pany and Fuhkbx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Pany Growth and Fuhkbx, you can compare the effects of market volatilities on Small Pany and Fuhkbx 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 Small Pany with a short position of Fuhkbx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Pany and Fuhkbx.
Diversification Opportunities for Small Pany and Fuhkbx
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Small and Fuhkbx is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Small Pany Growth and Fuhkbx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuhkbx and Small Pany 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 Small Pany Growth are associated (or correlated) with Fuhkbx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuhkbx has no effect on the direction of Small Pany i.e., Small Pany and Fuhkbx go up and down completely randomly.
Pair Corralation between Small Pany and Fuhkbx
Assuming the 90 days horizon Small Pany is expected to generate 5.3 times less return on investment than Fuhkbx. In addition to that, Small Pany is 2.08 times more volatile than Fuhkbx. It trades about 0.01 of its total potential returns per unit of risk. Fuhkbx is currently generating about 0.14 per unit of volatility. If you would invest 972.00 in Fuhkbx on November 4, 2024 and sell it today you would earn a total of 18.00 from holding Fuhkbx or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Small Pany Growth vs. Fuhkbx
Performance |
| Timeline |
| Small Pany Growth |
| Fuhkbx |
Small Pany and Fuhkbx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small Pany and Fuhkbx
The main advantage of trading using opposite Small Pany and Fuhkbx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small Pany position performs unexpectedly, Fuhkbx 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 Fuhkbx will offset losses from the drop in Fuhkbx's long position.| Small Pany vs. Mid Cap Growth | Small Pany vs. Growth Portfolio Class | Small Pany vs. Morgan Stanley Multi | Small Pany vs. Emerging Markets Portfolio |
| Fuhkbx vs. Federated Emerging Market | Fuhkbx vs. Franklin Emerging Market | Fuhkbx vs. Vy Jpmorgan Emerging | Fuhkbx vs. Investec Emerging Markets |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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