Correlation Between Fuyao Glass and Nucletron Electronic

Can any of the company-specific risk be diversified away by investing in both Fuyao Glass and Nucletron Electronic 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 Fuyao Glass and Nucletron Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fuyao Glass Industry and Nucletron Electronic Aktiengesellschaft, you can compare the effects of market volatilities on Fuyao Glass and Nucletron Electronic 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 Fuyao Glass with a short position of Nucletron Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuyao Glass and Nucletron Electronic.

Diversification Opportunities for Fuyao Glass and Nucletron Electronic

0.0

Correlation Coefficient

Fuyao Glass  Nucletron Electronic

Pay attention - limited upside

The 3 months correlation between Fuyao and Nucletron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fuyao Glass Industry and Nucletron Electronic Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nucletron Electronic and Fuyao Glass 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 Fuyao Glass Industry are associated (or correlated) with Nucletron Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nucletron Electronic has no effect on the direction of Fuyao Glass i.e., Fuyao Glass and Nucletron Electronic go up and down completely randomly.

Pair Corralation between Fuyao Glass and Nucletron Electronic

If you would invest  760.00  in Nucletron Electronic Aktiengesellschaft on December 22, 2024 and sell it today you would earn a total of  0.00  from holding Nucletron Electronic Aktiengesellschaft or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Fuyao Glass Industry  vs.  Nucletron Electronic Aktienges

Fuyao Glass Industry

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fuyao Glass Industry has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Fuyao Glass is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Nucletron Electronic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nucletron Electronic Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Nucletron Electronic is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Fuyao Glass and Nucletron Electronic

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

The idea behind Fuyao Glass Industry and Nucletron Electronic Aktiengesellschaft 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.