Correlation Between Ji Haw and Fu Burg
Can any of the company-specific risk be diversified away by investing in both Ji Haw and Fu Burg 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 Ji Haw and Fu Burg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ji Haw Industrial Co and Fu Burg Industrial, you can compare the effects of market volatilities on Ji Haw and Fu Burg 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 Ji Haw with a short position of Fu Burg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ji Haw and Fu Burg.
Diversification Opportunities for Ji Haw and Fu Burg
Weak diversification
The 3 months correlation between 3011 and 8929 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ji Haw Industrial Co and Fu Burg Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fu Burg Industrial and Ji Haw 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 Ji Haw Industrial Co are associated (or correlated) with Fu Burg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fu Burg Industrial has no effect on the direction of Ji Haw i.e., Ji Haw and Fu Burg go up and down completely randomly.
Pair Corralation between Ji Haw and Fu Burg
Assuming the 90 days trading horizon Ji Haw Industrial Co is expected to under-perform the Fu Burg. In addition to that, Ji Haw is 1.03 times more volatile than Fu Burg Industrial. It trades about -0.18 of its total potential returns per unit of risk. Fu Burg Industrial is currently generating about -0.05 per unit of volatility. If you would invest 2,550 in Fu Burg Industrial on December 28, 2024 and sell it today you would lose (190.00) from holding Fu Burg Industrial or give up 7.45% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.21% |
Values | Daily Returns |
Ji Haw Industrial Co vs. Fu Burg Industrial
Performance |
Timeline |
Ji Haw Industrial |
Fu Burg Industrial |
Ji Haw and Fu Burg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ji Haw and Fu Burg
The main advantage of trading using opposite Ji Haw and Fu Burg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ji Haw position performs unexpectedly, Fu Burg 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 Fu Burg will offset losses from the drop in Fu Burg's long position.Ji Haw vs. Chenming Mold Industrial | Ji Haw vs. Tripod Technology Corp | Ji Haw vs. Asia Optical Co | Ji Haw vs. Welltend Technology Corp |
Fu Burg vs. Kindom Construction Corp | Fu Burg vs. Galaxy Software Services | Fu Burg vs. Chumpower Machinery Corp | Fu Burg vs. Strong H Machinery |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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