Correlation Between FSPG Hi and ChengDu Hi-Tech
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By analyzing existing cross correlation between FSPG Hi Tech Co and ChengDu Hi Tech Development, you can compare the effects of market volatilities on FSPG Hi and ChengDu Hi-Tech 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 ChengDu Hi-Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and ChengDu Hi-Tech.
Diversification Opportunities for FSPG Hi and ChengDu Hi-Tech
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FSPG and ChengDu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and ChengDu Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChengDu Hi Tech 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 ChengDu Hi-Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChengDu Hi Tech has no effect on the direction of FSPG Hi i.e., FSPG Hi and ChengDu Hi-Tech go up and down completely randomly.
Pair Corralation between FSPG Hi and ChengDu Hi-Tech
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 1.79 times more return on investment than ChengDu Hi-Tech. However, FSPG Hi is 1.79 times more volatile than ChengDu Hi Tech Development. It trades about 0.18 of its potential returns per unit of risk. ChengDu Hi Tech Development is currently generating about -0.22 per unit of risk. If you would invest 570.00 in FSPG Hi Tech Co on September 1, 2024 and sell it today you would earn a total of 130.00 from holding FSPG Hi Tech Co or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. ChengDu Hi Tech Development
Performance |
| Timeline |
| FSPG Hi Tech |
| ChengDu Hi Tech |
FSPG Hi and ChengDu Hi-Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and ChengDu Hi-Tech
The main advantage of trading using opposite FSPG Hi and ChengDu Hi-Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, ChengDu Hi-Tech 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 ChengDu Hi-Tech will offset losses from the drop in ChengDu Hi-Tech's long position.| FSPG Hi vs. Impulse Qingdao Health | FSPG Hi vs. Eastern Air Logistics | FSPG Hi vs. Meinian Onehealth Healthcare | FSPG Hi vs. Everjoy Health Group |
| ChengDu Hi-Tech vs. BeiGene | ChengDu Hi-Tech vs. Kweichow Moutai Co | ChengDu Hi-Tech vs. Beijing Roborock Technology | ChengDu Hi-Tech vs. G bits Network Technology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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