Correlation Between NYSE Composite and Fuwei Films
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Fuwei Films into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Fuwei Films Holdings, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Fuwei Films. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Fuwei Films.
Diversification Opportunities for NYSE Composite and Fuwei Films
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Fuwei is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Fuwei Films go up and down completely randomly.
Pair Corralation between NYSE Composite and Fuwei Films
If you would invest 848.00 in Fuwei Films Holdings on February 4, 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 |
NYSE Composite vs. Fuwei Films Holdings
Performance |
Timeline |
NYSE Composite and Fuwei Films Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fuwei Films Holdings
Pair trading matchups for Fuwei Films
Pair Trading with NYSE Composite and Fuwei Films
The main advantage of trading using opposite NYSE Composite and Fuwei Films positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.NYSE Composite vs. The Cheesecake Factory | NYSE Composite vs. Vector Group | NYSE Composite vs. Ecolab Inc | NYSE Composite vs. Dine Brands Global |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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