Correlation Between Digital China and Fujian Oriental
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By analyzing existing cross correlation between Digital China Information and Fujian Oriental Silver, you can compare the effects of market volatilities on Digital China and Fujian Oriental 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 Digital China with a short position of Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital China and Fujian Oriental.
Diversification Opportunities for Digital China and Fujian Oriental
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Digital and Fujian is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Digital China Information and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver and Digital China 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 Digital China Information are associated (or correlated) with Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Digital China i.e., Digital China and Fujian Oriental go up and down completely randomly.
Pair Corralation between Digital China and Fujian Oriental
Assuming the 90 days trading horizon Digital China Information is expected to generate 0.97 times more return on investment than Fujian Oriental. However, Digital China Information is 1.03 times less risky than Fujian Oriental. It trades about 0.07 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.03 per unit of risk. If you would invest 1,314 in Digital China Information on September 12, 2024 and sell it today you would earn a total of 50.00 from holding Digital China Information or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Digital China Information vs. Fujian Oriental Silver
Performance |
| Timeline |
| Digital China Information |
| Fujian Oriental Silver |
Digital China and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital China and Fujian Oriental
The main advantage of trading using opposite Digital China and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital China position performs unexpectedly, Fujian Oriental 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 Oriental will offset losses from the drop in Fujian Oriental's long position.| Digital China vs. Gansu Jiu Steel | Digital China vs. Shandong Mining Machinery | Digital China vs. Aba Chemicals Corp | Digital China vs. BlueFocus Communication Group |
| Fujian Oriental vs. Guangdong Jingyi Metal | Fujian Oriental vs. Bomin Electronics Co | Fujian Oriental vs. Xinjiang Baodi Mining | Fujian Oriental vs. Dongguan Tarry Electronics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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