Correlation Between International Paper and Fuwei Films
Can any of the company-specific risk be diversified away by investing in both International Paper 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 International Paper and Fuwei Films into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Paper and Fuwei Films Holdings, you can compare the effects of market volatilities on International Paper 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 International Paper with a short position of Fuwei Films. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Paper and Fuwei Films.
Diversification Opportunities for International Paper and Fuwei Films
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Fuwei is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding International Paper 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 International Paper 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 International Paper 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 International Paper i.e., International Paper and Fuwei Films go up and down completely randomly.
Pair Corralation between International Paper and Fuwei Films
If you would invest 848.00 in Fuwei Films Holdings on February 7, 2024 and sell it today you would earn a total of 0.00 from holding Fuwei Films Holdings or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
International Paper vs. Fuwei Films Holdings
Performance |
Timeline |
International Paper |
Fuwei Films Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Paper and Fuwei Films Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with International Paper and Fuwei Films
The main advantage of trading using opposite International Paper and Fuwei Films positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Paper 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.International Paper vs. Reynolds Consumer Products | International Paper vs. Thrivent High Yield | International Paper vs. Morningstar Unconstrained Allocation | International Paper vs. Via Renewables |
Fuwei Films vs. nLIGHT Inc | Fuwei Films vs. Globalfoundries | Fuwei Films vs. Amkor Technology | Fuwei Films vs. PennantPark Investment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |