Correlation Between Jiangnan Mould and Fuzhou Rockchip
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Jiangnan Mould 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 Jiangnan Mould with a short position of Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Fuzhou Rockchip.
Diversification Opportunities for Jiangnan Mould and Fuzhou Rockchip
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangnan and Fuzhou is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic 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 Jiangnan Mould 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 Jiangnan Mould Plastic 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 Jiangnan Mould i.e., Jiangnan Mould and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Fuzhou Rockchip
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to under-perform the Fuzhou Rockchip. But the stock apears to be less risky and, when comparing its historical volatility, Jiangnan Mould Plastic is 3.05 times less risky than Fuzhou Rockchip. The stock trades about -0.06 of its potential returns per unit of risk. The Fuzhou Rockchip Electronics is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 11,595 in Fuzhou Rockchip Electronics on October 30, 2024 and sell it today you would earn a total of 4,855 from holding Fuzhou Rockchip Electronics or generate 41.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Fuzhou Rockchip Elec |
Jiangnan Mould and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Fuzhou Rockchip
The main advantage of trading using opposite Jiangnan Mould and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould 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.| Jiangnan Mould vs. BrightGene Bio Medical | Jiangnan Mould vs. Kontour Medical Technology | Jiangnan Mould vs. Threes Company Media | Jiangnan Mould vs. Hengdian Entertainment Co |
| Fuzhou Rockchip vs. Guocheng Mining Co | Fuzhou Rockchip vs. Guangdong Jingyi Metal | Fuzhou Rockchip vs. Uroica Mining Safety | Fuzhou Rockchip vs. Hainan Mining Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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