Correlation Between Guandao Puer and FNP Technologies
Can any of the company-specific risk be diversified away by investing in both Guandao Puer and FNP Technologies 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 Guandao Puer and FNP Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guandao Puer Investment and FNP Technologies SA, you can compare the effects of market volatilities on Guandao Puer and FNP Technologies 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 Guandao Puer with a short position of FNP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guandao Puer and FNP Technologies.
Diversification Opportunities for Guandao Puer and FNP Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guandao and FNP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guandao Puer Investment and FNP Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNP Technologies and Guandao Puer 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 Guandao Puer Investment are associated (or correlated) with FNP Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNP Technologies has no effect on the direction of Guandao Puer i.e., Guandao Puer and FNP Technologies go up and down completely randomly.
Pair Corralation between Guandao Puer and FNP Technologies
If you would invest 45.00 in Guandao Puer Investment on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Guandao Puer Investment or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.58% |
Values | Daily Returns |
Guandao Puer Investment vs. FNP Technologies SA
Performance |
Timeline |
Guandao Puer Investment |
FNP Technologies |
Guandao Puer and FNP Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guandao Puer and FNP Technologies
The main advantage of trading using opposite Guandao Puer and FNP Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guandao Puer position performs unexpectedly, FNP Technologies 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 FNP Technologies will offset losses from the drop in FNP Technologies' long position.Guandao Puer vs. CMG Cleantech SA | Guandao Puer vs. Novatech Industries SA | Guandao Puer vs. Onlineformapro SA | Guandao Puer vs. Entech SE SAS |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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