Correlation Between Foxconn Industrial and Huaxia Eye
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By analyzing existing cross correlation between Foxconn Industrial Internet and Huaxia Eye Hospital, you can compare the effects of market volatilities on Foxconn Industrial and Huaxia Eye 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 Foxconn Industrial with a short position of Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foxconn Industrial and Huaxia Eye.
Diversification Opportunities for Foxconn Industrial and Huaxia Eye
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Foxconn and Huaxia is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Foxconn Industrial Internet and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital and Foxconn Industrial 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 Foxconn Industrial Internet are associated (or correlated) with Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Foxconn Industrial i.e., Foxconn Industrial and Huaxia Eye go up and down completely randomly.
Pair Corralation between Foxconn Industrial and Huaxia Eye
Assuming the 90 days trading horizon Foxconn Industrial Internet is expected to generate 0.98 times more return on investment than Huaxia Eye. However, Foxconn Industrial Internet is 1.02 times less risky than Huaxia Eye. It trades about 0.1 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.04 per unit of risk. If you would invest 2,211 in Foxconn Industrial Internet on September 25, 2024 and sell it today you would earn a total of 89.00 from holding Foxconn Industrial Internet or generate 4.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Foxconn Industrial Internet vs. Huaxia Eye Hospital
Performance |
Timeline |
Foxconn Industrial |
Huaxia Eye Hospital |
Foxconn Industrial and Huaxia Eye Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Foxconn Industrial and Huaxia Eye
The main advantage of trading using opposite Foxconn Industrial and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foxconn Industrial position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.Foxconn Industrial vs. Hefei Metalforming Mach | Foxconn Industrial vs. Great Sun Foods Co | Foxconn Industrial vs. Youyou Foods Co | Foxconn Industrial vs. Metallurgical of |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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