Correlation Between FSPG Hi and Digital China
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By analyzing existing cross correlation between FSPG Hi Tech Co and Digital China Information, you can compare the effects of market volatilities on FSPG Hi and Digital China 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 FSPG Hi with a short position of Digital China. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Digital China.
Diversification Opportunities for FSPG Hi and Digital China
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FSPG and Digital is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Digital China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital China Information and FSPG Hi 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 FSPG Hi Tech Co are associated (or correlated) with Digital China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital China Information has no effect on the direction of FSPG Hi i.e., FSPG Hi and Digital China go up and down completely randomly.
Pair Corralation between FSPG Hi and Digital China
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 0.6 times more return on investment than Digital China. However, FSPG Hi Tech Co is 1.67 times less risky than Digital China. It trades about -0.29 of its potential returns per unit of risk. Digital China Information is currently generating about -0.18 per unit of risk. If you would invest 685.00 in FSPG Hi Tech Co on October 11, 2024 and sell it today you would lose (113.00) from holding FSPG Hi Tech Co or give up 16.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Digital China Information
Performance |
| Timeline |
| FSPG Hi Tech |
| Digital China Information |
FSPG Hi and Digital China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Digital China
The main advantage of trading using opposite FSPG Hi and Digital China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Digital China 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 Digital China will offset losses from the drop in Digital China's long position.| FSPG Hi vs. Rising Nonferrous Metals | FSPG Hi vs. Universal Scientific Industrial | FSPG Hi vs. RoadMain T Co | FSPG Hi vs. Tibet Huayu Mining |
| Digital China vs. China Minmetals Rare | Digital China vs. Xinjiang Baodi Mining | Digital China vs. Lotus Health Group | Digital China vs. Hefei Metalforming Mach |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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