Correlation Between FANDIFI TECHNOLOGY and Swire Properties
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and Swire Properties 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 Swire Properties 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 Swire Properties Limited, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and Swire Properties 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 Swire Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and Swire Properties.
Diversification Opportunities for FANDIFI TECHNOLOGY and Swire Properties
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and Swire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and Swire Properties Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swire Properties 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 Swire Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swire Properties has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and Swire Properties go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and Swire Properties
If you would invest 186.00 in Swire Properties Limited on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Swire Properties Limited or generate 2.69% 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. Swire Properties Limited
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| Swire Properties |
FANDIFI TECHNOLOGY and Swire Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and Swire Properties
The main advantage of trading using opposite FANDIFI TECHNOLOGY and Swire Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, Swire Properties 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 Swire Properties will offset losses from the drop in Swire Properties' long position.| FANDIFI TECHNOLOGY vs. AECOM TECHNOLOGY | FANDIFI TECHNOLOGY vs. PKSHA TECHNOLOGY INC | FANDIFI TECHNOLOGY vs. FAST RETAIL ADR | FANDIFI TECHNOLOGY vs. RETAIL FOOD GROUP |
| Swire Properties vs. Evolution Mining Limited | Swire Properties vs. Chunghwa Telecom Co | Swire Properties vs. MTI WIRELESS EDGE | Swire Properties vs. FANDIFI TECHNOLOGY P |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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