Correlation Between ChengDu Hi-Tech and Fuzhou Rockchip
Specify exactly 2 symbols:
By analyzing existing cross correlation between ChengDu Hi Tech Development and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on ChengDu Hi-Tech 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 ChengDu Hi-Tech with a short position of Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChengDu Hi-Tech and Fuzhou Rockchip.
Diversification Opportunities for ChengDu Hi-Tech and Fuzhou Rockchip
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ChengDu and Fuzhou is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding ChengDu Hi Tech Development 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 ChengDu Hi-Tech 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 ChengDu Hi Tech Development 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 ChengDu Hi-Tech i.e., ChengDu Hi-Tech and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between ChengDu Hi-Tech and Fuzhou Rockchip
Assuming the 90 days trading horizon ChengDu Hi Tech Development is expected to under-perform the Fuzhou Rockchip. In addition to that, ChengDu Hi-Tech is 1.28 times more volatile than Fuzhou Rockchip Electronics. It trades about -0.12 of its total potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about -0.01 per unit of volatility. If you would invest 8,537 in Fuzhou Rockchip Electronics on September 2, 2024 and sell it today you would lose (108.00) from holding Fuzhou Rockchip Electronics or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChengDu Hi Tech Development vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| ChengDu Hi Tech |
| Fuzhou Rockchip Elec |
ChengDu Hi-Tech and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChengDu Hi-Tech and Fuzhou Rockchip
The main advantage of trading using opposite ChengDu Hi-Tech and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChengDu Hi-Tech 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.| ChengDu Hi-Tech vs. Hainan Airlines Co | ChengDu Hi-Tech vs. Shaanxi Broadcast TV | ChengDu Hi-Tech vs. Shanghai Ziyan Foods | ChengDu Hi-Tech vs. Eastroc Beverage Group |
| Fuzhou Rockchip vs. Industrial and Commercial | Fuzhou Rockchip vs. Kweichow Moutai Co | Fuzhou Rockchip vs. Agricultural Bank of | Fuzhou Rockchip vs. China Mobile Limited |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |