Correlation Between FUYO GENERAL and Align Technology
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL and Align Technology 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 FUYO GENERAL and Align Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and Align Technology, you can compare the effects of market volatilities on FUYO GENERAL and Align Technology 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 FUYO GENERAL with a short position of Align Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Align Technology.
Diversification Opportunities for FUYO GENERAL and Align Technology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FUYO and Align is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology and FUYO GENERAL 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 FUYO GENERAL LEASE are associated (or correlated) with Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and Align Technology go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Align Technology
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to under-perform the Align Technology. But the stock apears to be less risky and, when comparing its historical volatility, FUYO GENERAL LEASE is 2.16 times less risky than Align Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Align Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 15,865 in Align Technology on May 2, 2025 and sell it today you would earn a total of 1,920 from holding Align Technology or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. Align Technology
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Align Technology |
FUYO GENERAL and Align Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Align Technology
The main advantage of trading using opposite FUYO GENERAL and Align Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL position performs unexpectedly, Align Technology 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 Align Technology will offset losses from the drop in Align Technology's long position.| FUYO GENERAL vs. Vienna Insurance Group | FUYO GENERAL vs. Firan Technology Group | FUYO GENERAL vs. ZURICH INSURANCE GROUP | FUYO GENERAL vs. Addtech AB |
| Align Technology vs. Abbott Laboratories | Align Technology vs. Abbott Laboratories | Align Technology vs. Stryker | Align Technology vs. Boston Scientific |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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