Correlation Between FANDIFI TECHNOLOGY and Datang International
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and Datang International 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 FANDIFI TECHNOLOGY and Datang International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and Datang International Power, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and Datang International 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 FANDIFI TECHNOLOGY with a short position of Datang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and Datang International.
Diversification Opportunities for FANDIFI TECHNOLOGY and Datang International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and Datang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and Datang International Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang International and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P are associated (or correlated) with Datang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang International has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and Datang International go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and Datang International
If you would invest 0.05 in FANDIFI TECHNOLOGY P on September 1, 2024 and sell it today you would earn a total of 0.00 from holding FANDIFI TECHNOLOGY P or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. Datang International Power
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| Datang International |
FANDIFI TECHNOLOGY and Datang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and Datang International
The main advantage of trading using opposite FANDIFI TECHNOLOGY and Datang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, Datang International 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 Datang International will offset losses from the drop in Datang International's long position.| FANDIFI TECHNOLOGY vs. SAP SE | FANDIFI TECHNOLOGY vs. Superior Plus Corp | FANDIFI TECHNOLOGY vs. NMI Holdings | FANDIFI TECHNOLOGY vs. Origin Agritech |
| Datang International vs. CENTRICA ADR NEW | Datang International vs. TransAlta | Datang International vs. Superior Plus Corp | Datang International vs. NMI Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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