Correlation Between Weichai Heavy and Fujian Longzhou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weichai Heavy Machinery and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Weichai Heavy and Fujian Longzhou 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 Weichai Heavy with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weichai Heavy and Fujian Longzhou.
Diversification Opportunities for Weichai Heavy and Fujian Longzhou
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Weichai and Fujian is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Weichai Heavy Machinery and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran and Weichai Heavy 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 Weichai Heavy Machinery are associated (or correlated) with Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Weichai Heavy i.e., Weichai Heavy and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Weichai Heavy and Fujian Longzhou
Assuming the 90 days trading horizon Weichai Heavy Machinery is expected to generate 1.41 times more return on investment than Fujian Longzhou. However, Weichai Heavy is 1.41 times more volatile than Fujian Longzhou Transportation. It trades about 0.12 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.14 per unit of risk. If you would invest 1,118 in Weichai Heavy Machinery on August 29, 2024 and sell it today you would earn a total of 131.00 from holding Weichai Heavy Machinery or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weichai Heavy Machinery vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Weichai Heavy Machinery |
| Fujian Longzhou Tran |
Weichai Heavy and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weichai Heavy and Fujian Longzhou
The main advantage of trading using opposite Weichai Heavy and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weichai Heavy position performs unexpectedly, Fujian Longzhou 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 Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Weichai Heavy vs. China Asset Management | Weichai Heavy vs. Harvest Fund Management | Weichai Heavy vs. JCHX Mining Management | Weichai Heavy vs. AVIC Fund Management |
| Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Bank of China | Fujian Longzhou vs. China Construction Bank |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |