Correlation Between Fu Burg and Shieh Yih
Can any of the company-specific risk be diversified away by investing in both Fu Burg and Shieh Yih 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 Fu Burg and Shieh Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fu Burg Industrial and Shieh Yih Machinery, you can compare the effects of market volatilities on Fu Burg and Shieh Yih 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 Fu Burg with a short position of Shieh Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fu Burg and Shieh Yih.
Diversification Opportunities for Fu Burg and Shieh Yih
Pay attention - limited upside
The 3 months correlation between 8929 and Shieh is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fu Burg Industrial and Shieh Yih Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shieh Yih Machinery and Fu Burg 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 Fu Burg Industrial are associated (or correlated) with Shieh Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shieh Yih Machinery has no effect on the direction of Fu Burg i.e., Fu Burg and Shieh Yih go up and down completely randomly.
Pair Corralation between Fu Burg and Shieh Yih
Assuming the 90 days trading horizon Fu Burg Industrial is expected to under-perform the Shieh Yih. In addition to that, Fu Burg is 2.0 times more volatile than Shieh Yih Machinery. It trades about -0.07 of its total potential returns per unit of risk. Shieh Yih Machinery is currently generating about 0.04 per unit of volatility. If you would invest 3,815 in Shieh Yih Machinery on September 25, 2024 and sell it today you would earn a total of 55.00 from holding Shieh Yih Machinery or generate 1.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Fu Burg Industrial vs. Shieh Yih Machinery
Performance |
Timeline |
Fu Burg Industrial |
Shieh Yih Machinery |
Fu Burg and Shieh Yih Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fu Burg and Shieh Yih
The main advantage of trading using opposite Fu Burg and Shieh Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fu Burg position performs unexpectedly, Shieh Yih 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 Shieh Yih will offset losses from the drop in Shieh Yih's long position.Fu Burg vs. Shinkong Synthetic Fiber | Fu Burg vs. China Petrochemical Development | Fu Burg vs. Chi Hua Fitness | Fu Burg vs. Phoenix Silicon International |
Shieh Yih vs. Fu Burg Industrial | Shieh Yih vs. Phytohealth Corp | Shieh Yih vs. Ton Yi Industrial | Shieh Yih vs. CHC Healthcare Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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