Correlation Between Digital China and Fuzhou Rockchip
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By analyzing existing cross correlation between Digital China Information and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Digital China and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital China and Fuzhou Rockchip.
Diversification Opportunities for Digital China and Fuzhou Rockchip
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Digital and Fuzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Digital China Information and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Digital China i.e., Digital China and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Digital China and Fuzhou Rockchip
Assuming the 90 days trading horizon Digital China Information is expected to generate 0.95 times more return on investment than Fuzhou Rockchip. However, Digital China Information is 1.05 times less risky than Fuzhou Rockchip. It trades about 0.04 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.03 per unit of risk. If you would invest 1,034 in Digital China Information on September 14, 2024 and sell it today you would earn a total of 373.00 from holding Digital China Information or generate 36.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital China Information vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Digital China Information |
| Fuzhou Rockchip Elec |
Digital China and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital China and Fuzhou Rockchip
The main advantage of trading using opposite Digital China and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital China position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Digital China vs. China Petroleum Chemical | Digital China vs. PetroChina Co Ltd | Digital China vs. China State Construction | Digital China vs. China Railway Group |
| Fuzhou Rockchip vs. Digital China Information | Fuzhou Rockchip vs. Emdoor Information Co | Fuzhou Rockchip vs. Cicc Fund Management | Fuzhou Rockchip vs. JCHX Mining Management |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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