Correlation Between Fuyao Glass and Amadeus IT
Can any of the company-specific risk be diversified away by investing in both Fuyao Glass and Amadeus IT 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 Fuyao Glass and Amadeus IT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuyao Glass Industry and Amadeus IT Group, you can compare the effects of market volatilities on Fuyao Glass and Amadeus IT 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 Fuyao Glass with a short position of Amadeus IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuyao Glass and Amadeus IT.
Diversification Opportunities for Fuyao Glass and Amadeus IT
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fuyao and Amadeus is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fuyao Glass Industry and Amadeus IT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amadeus IT Group and Fuyao Glass 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 Fuyao Glass Industry are associated (or correlated) with Amadeus IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amadeus IT Group has no effect on the direction of Fuyao Glass i.e., Fuyao Glass and Amadeus IT go up and down completely randomly.
Pair Corralation between Fuyao Glass and Amadeus IT
Assuming the 90 days horizon Fuyao Glass Industry is expected to generate 2.5 times more return on investment than Amadeus IT. However, Fuyao Glass is 2.5 times more volatile than Amadeus IT Group. It trades about 0.02 of its potential returns per unit of risk. Amadeus IT Group is currently generating about -0.14 per unit of risk. If you would invest 715.00 in Fuyao Glass Industry on August 20, 2025 and sell it today you would earn a total of 10.00 from holding Fuyao Glass Industry or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuyao Glass Industry vs. Amadeus IT Group
Performance |
| Timeline |
| Fuyao Glass Industry |
| Amadeus IT Group |
Fuyao Glass and Amadeus IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuyao Glass and Amadeus IT
The main advantage of trading using opposite Fuyao Glass and Amadeus IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuyao Glass position performs unexpectedly, Amadeus IT 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 Amadeus IT will offset losses from the drop in Amadeus IT's long position.| Fuyao Glass vs. THAI BEVERAGE | Fuyao Glass vs. Thai Beverage Public | Fuyao Glass vs. Tsingtao Brewery | Fuyao Glass vs. Phibro Animal Health |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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