Correlation Between Shenzhen Centralcon and Fujian Rongji
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Fujian Rongji Software, you can compare the effects of market volatilities on Shenzhen Centralcon and Fujian Rongji 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 Shenzhen Centralcon with a short position of Fujian Rongji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Fujian Rongji.
Diversification Opportunities for Shenzhen Centralcon and Fujian Rongji
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Fujian Rongji Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Rongji Software and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Fujian Rongji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Rongji Software has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Fujian Rongji go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Fujian Rongji
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Fujian Rongji. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Centralcon Investment is 1.09 times less risky than Fujian Rongji. The stock trades about -0.02 of its potential returns per unit of risk. The Fujian Rongji Software is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 814.00 in Fujian Rongji Software on September 3, 2024 and sell it today you would lose (146.00) from holding Fujian Rongji Software or give up 17.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Fujian Rongji Software
Performance |
| Timeline |
| Shenzhen Centralcon |
| Fujian Rongji Software |
Shenzhen Centralcon and Fujian Rongji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Fujian Rongji
The main advantage of trading using opposite Shenzhen Centralcon and Fujian Rongji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Fujian Rongji 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 Fujian Rongji will offset losses from the drop in Fujian Rongji's long position.| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
| Fujian Rongji vs. Vanfund Urban Investment | Fujian Rongji vs. Xiandai Investment Co | Fujian Rongji vs. Shenzhen Centralcon Investment | Fujian Rongji vs. Cultural Investment Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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