Correlation Between FSPG Hi and Xinjiang Communications
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By analyzing existing cross correlation between FSPG Hi Tech Co and Xinjiang Communications Construction, you can compare the effects of market volatilities on FSPG Hi and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Xinjiang Communications.
Diversification Opportunities for FSPG Hi and Xinjiang Communications
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FSPG and Xinjiang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of FSPG Hi i.e., FSPG Hi and Xinjiang Communications go up and down completely randomly.
Pair Corralation between FSPG Hi and Xinjiang Communications
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 2.4 times more return on investment than Xinjiang Communications. However, FSPG Hi is 2.4 times more volatile than Xinjiang Communications Construction. It trades about 0.18 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.18 per unit of risk. If you would invest 570.00 in FSPG Hi Tech Co on September 3, 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 | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Xinjiang Communications Constr
Performance |
| Timeline |
| FSPG Hi Tech |
| Xinjiang Communications |
FSPG Hi and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Xinjiang Communications
The main advantage of trading using opposite FSPG Hi and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| FSPG Hi vs. Zijin Mining Group | FSPG Hi vs. Baoshan Iron Steel | FSPG Hi vs. Rongsheng Petrochemical Co | FSPG Hi vs. Hoshine Silicon Ind |
| Xinjiang Communications vs. Cultural Investment Holdings | Xinjiang Communications vs. Gome Telecom Equipment | Xinjiang Communications vs. Bus Online Co | Xinjiang Communications vs. Holitech Technology 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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