Correlation Between Soyea Technology and Fujian Oriental
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By analyzing existing cross correlation between Soyea Technology Co and Fujian Oriental Silver, you can compare the effects of market volatilities on Soyea Technology and Fujian Oriental 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 Soyea Technology with a short position of Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and Fujian Oriental.
Diversification Opportunities for Soyea Technology and Fujian Oriental
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Soyea and Fujian is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver and Soyea Technology 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 Soyea Technology Co are associated (or correlated) with Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Soyea Technology i.e., Soyea Technology and Fujian Oriental go up and down completely randomly.
Pair Corralation between Soyea Technology and Fujian Oriental
Assuming the 90 days trading horizon Soyea Technology Co is expected to generate 0.94 times more return on investment than Fujian Oriental. However, Soyea Technology Co is 1.07 times less risky than Fujian Oriental. It trades about 0.2 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.25 per unit of risk. If you would invest 479.00 in Soyea Technology Co on August 29, 2024 and sell it today you would earn a total of 68.00 from holding Soyea Technology Co or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soyea Technology Co vs. Fujian Oriental Silver
Performance |
| Timeline |
| Soyea Technology |
| Fujian Oriental Silver |
Soyea Technology and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and Fujian Oriental
The main advantage of trading using opposite Soyea Technology and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology position performs unexpectedly, Fujian Oriental 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 Oriental will offset losses from the drop in Fujian Oriental's long position.| Soyea Technology vs. Cambricon Technologies Corp | Soyea Technology vs. Empyrean Technology Co | Soyea Technology vs. Kuang Chi Technologies | Soyea Technology vs. Gansu Jiu Steel |
| Fujian Oriental vs. Cambricon Technologies Corp | Fujian Oriental vs. Empyrean Technology Co | Fujian Oriental vs. Kuang Chi Technologies | Fujian Oriental vs. Gansu Jiu Steel |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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