Correlation Between Ball and Fuwei Films
Can any of the company-specific risk be diversified away by investing in both Ball and Fuwei Films 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 Ball and Fuwei Films into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ball Corporation and Fuwei Films Holdings, you can compare the effects of market volatilities on Ball and Fuwei Films 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 Ball with a short position of Fuwei Films. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ball and Fuwei Films.
Diversification Opportunities for Ball and Fuwei Films
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ball and Fuwei is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ball Corp. and Fuwei Films Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuwei Films Holdings and Ball 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 Ball Corporation are associated (or correlated) with Fuwei Films. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuwei Films Holdings has no effect on the direction of Ball i.e., Ball and Fuwei Films go up and down completely randomly.
Pair Corralation between Ball and Fuwei Films
If you would invest 527.00 in Fuwei Films Holdings on January 20, 2024 and sell it today you would earn a total of 321.00 from holding Fuwei Films Holdings or generate 60.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Ball Corp. vs. Fuwei Films Holdings
Performance |
Timeline |
Ball |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fuwei Films Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ball and Fuwei Films Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ball and Fuwei Films
The main advantage of trading using opposite Ball and Fuwei Films positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ball position performs unexpectedly, Fuwei Films 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 Fuwei Films will offset losses from the drop in Fuwei Films' long position.Ball vs. Canada Goose Holdings | Ball vs. Rocky Brands | Ball vs. ZK International Group | Ball vs. IFAN Financial |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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