Correlation Between P Duke and Feng Ching

Can any of the company-specific risk be diversified away by investing in both P Duke and Feng Ching 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 P Duke and Feng Ching into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between P Duke Technology Co and Feng Ching Metal, you can compare the effects of market volatilities on P Duke and Feng Ching 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 P Duke with a short position of Feng Ching. Check out your portfolio center. Please also check ongoing floating volatility patterns of P Duke and Feng Ching.

Diversification Opportunities for P Duke and Feng Ching

-0.73

Correlation Coefficient

P Duke  Feng Ching

Pay attention - limited upside

The 3 months correlation between 8109 and Feng is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding P Duke Technology Co and Feng Ching Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Ching Metal and P Duke 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 P Duke Technology Co are associated (or correlated) with Feng Ching. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Ching Metal has no effect on the direction of P Duke i.e., P Duke and Feng Ching go up and down completely randomly.

Pair Corralation between P Duke and Feng Ching

Assuming the 90 days trading horizon P Duke Technology Co is expected to generate 0.33 times more return on investment than Feng Ching. However, P Duke Technology Co is 2.99 times less risky than Feng Ching. It trades about 0.14 of its potential returns per unit of risk. Feng Ching Metal is currently generating about -0.11 per unit of risk. If you would invest  8,750  in P Duke Technology Co on October 26, 2024 and sell it today you would earn a total of  480.00  from holding P Duke Technology Co or generate 5.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

P Duke Technology Co  vs.  Feng Ching Metal

P Duke Technology

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in P Duke Technology Co are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, P Duke is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Feng Ching Metal

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Feng Ching Metal has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with P Duke and Feng Ching

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

The idea behind P Duke Technology Co and Feng Ching Metal 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.