Correlation Between Fuwei Films and Ball
Can any of the company-specific risk be diversified away by investing in both Fuwei Films and Ball 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 Fuwei Films and Ball into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuwei Films Holdings and Ball Corporation, you can compare the effects of market volatilities on Fuwei Films and Ball 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 Fuwei Films with a short position of Ball. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuwei Films and Ball.
Diversification Opportunities for Fuwei Films and Ball
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fuwei and Ball is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fuwei Films Holdings and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball and Fuwei Films 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 Fuwei Films Holdings are associated (or correlated) with Ball. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ball has no effect on the direction of Fuwei Films i.e., Fuwei Films and Ball go up and down completely randomly.
Pair Corralation between Fuwei Films and Ball
If you would invest (100.00) in Ball Corporation on December 29, 2023 and sell it today you would earn a total of 100.00 from holding Ball Corporation or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Fuwei Films Holdings vs. Ball Corp.
Performance |
Timeline |
Fuwei Films Holdings |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Ball |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Fuwei Films and Ball Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fuwei Films and Ball
The main advantage of trading using opposite Fuwei Films and Ball positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuwei Films position performs unexpectedly, Ball 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 Ball will offset losses from the drop in Ball's long position.Fuwei Films vs. Forsys Metals Corp | Fuwei Films vs. Arrow Electronics | Fuwei Films vs. Chester Mining | Fuwei Films vs. Sea |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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