Correlation Between Fitipower Integrated and Fulltech Fiber

Can any of the company-specific risk be diversified away by investing in both Fitipower Integrated and Fulltech Fiber 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 Fitipower Integrated and Fulltech Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fitipower Integrated Technology and Fulltech Fiber Glass, you can compare the effects of market volatilities on Fitipower Integrated and Fulltech Fiber 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 Fitipower Integrated with a short position of Fulltech Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitipower Integrated and Fulltech Fiber.

Diversification Opportunities for Fitipower Integrated and Fulltech Fiber

-0.7

Correlation Coefficient

Fitipower Integrated  Fulltech Fiber

Excellent diversification

The 3 months correlation between Fitipower and Fulltech is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Fitipower Integrated Technolog and Fulltech Fiber Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulltech Fiber Glass and Fitipower Integrated 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 Fitipower Integrated Technology are associated (or correlated) with Fulltech Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulltech Fiber Glass has no effect on the direction of Fitipower Integrated i.e., Fitipower Integrated and Fulltech Fiber go up and down completely randomly.

Pair Corralation between Fitipower Integrated and Fulltech Fiber

If you would invest  24,077  in Fitipower Integrated Technology on October 4, 2024 and sell it today you would lose (1,027) from holding Fitipower Integrated Technology or give up 4.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Fitipower Integrated Technolog  vs.  Fulltech Fiber Glass

Fitipower Integrated

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fitipower Integrated Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Fulltech Fiber Glass

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Fulltech Fiber Glass has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Fulltech Fiber showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fitipower Integrated and Fulltech Fiber

The main advantage of trading using opposite Fitipower Integrated and Fulltech Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitipower Integrated position performs unexpectedly, Fulltech Fiber 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 Fulltech Fiber will offset losses from the drop in Fulltech Fiber's long position.

The idea behind Fitipower Integrated Technology and Fulltech Fiber Glass pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.