Correlation Between China Sun and Funai Electric
Can any of the company-specific risk be diversified away by investing in both China Sun and Funai Electric 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 China Sun and Funai Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Sun Grp and Funai Electric Co, you can compare the effects of market volatilities on China Sun and Funai Electric 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 China Sun with a short position of Funai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sun and Funai Electric.
Diversification Opportunities for China Sun and Funai Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Funai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Sun Grp and Funai Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funai Electric and China Sun 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 China Sun Grp are associated (or correlated) with Funai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funai Electric has no effect on the direction of China Sun i.e., China Sun and Funai Electric go up and down completely randomly.
Pair Corralation between China Sun and Funai Electric
If you would invest (100.00) in Funai Electric Co on January 31, 2024 and sell it today you would earn a total of 100.00 from holding Funai Electric Co 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 |
China Sun Grp vs. Funai Electric Co
Performance |
Timeline |
China Sun Grp |
Funai Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Sun and Funai Electric Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Sun and Funai Electric
The main advantage of trading using opposite China Sun and Funai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sun position performs unexpectedly, Funai Electric 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 Funai Electric will offset losses from the drop in Funai Electric's long position.China Sun vs. Anhui Conch Cement | China Sun vs. Asahi Kaisei Corp | China Sun vs. Alumina Limited | China Sun vs. HUMANA INC |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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