Correlation Between China Securities and Foxconn Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Foxconn Industrial Internet, you can compare the effects of market volatilities on China Securities and Foxconn Industrial 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 China Securities with a short position of Foxconn Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Foxconn Industrial.
Diversification Opportunities for China Securities and Foxconn Industrial
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Foxconn is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Foxconn Industrial Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foxconn Industrial and China Securities 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 China Securities 800 are associated (or correlated) with Foxconn Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foxconn Industrial has no effect on the direction of China Securities i.e., China Securities and Foxconn Industrial go up and down completely randomly.
Pair Corralation between China Securities and Foxconn Industrial
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.63 times more return on investment than Foxconn Industrial. However, China Securities 800 is 1.58 times less risky than Foxconn Industrial. It trades about 0.16 of its potential returns per unit of risk. Foxconn Industrial Internet is currently generating about 0.08 per unit of risk. If you would invest 346,857 in China Securities 800 on September 2, 2024 and sell it today you would earn a total of 76,679 from holding China Securities 800 or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Foxconn Industrial Internet
Performance |
| Timeline |
China Securities and Foxconn Industrial Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Foxconn Industrial Internet
Pair trading matchups for Foxconn Industrial
Pair Trading with China Securities and Foxconn Industrial
The main advantage of trading using opposite China Securities and Foxconn Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Foxconn Industrial 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 Foxconn Industrial will offset losses from the drop in Foxconn Industrial's long position.| China Securities vs. Omnijoi Media Corp | China Securities vs. Gansu Jiu Steel | China Securities vs. Dalian Zeus Entertainment | China Securities vs. JiShi Media 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |