Correlation Between FSPG Hi and Shenzhen
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By analyzing existing cross correlation between FSPG Hi Tech Co and Shenzhen AV Display Co, you can compare the effects of market volatilities on FSPG Hi and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Shenzhen.
Diversification Opportunities for FSPG Hi and Shenzhen
Poor diversification
The 3 months correlation between FSPG and Shenzhen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of FSPG Hi i.e., FSPG Hi and Shenzhen go up and down completely randomly.
Pair Corralation between FSPG Hi and Shenzhen
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 2.01 times more return on investment than Shenzhen. However, FSPG Hi is 2.01 times more volatile than Shenzhen AV Display Co. It trades about 0.18 of its potential returns per unit of risk. Shenzhen AV Display Co 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. Shenzhen AV Display Co
Performance |
| Timeline |
| FSPG Hi Tech |
| Shenzhen AV Display |
FSPG Hi and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Shenzhen
The main advantage of trading using opposite FSPG Hi and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen's 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 |
| Shenzhen vs. Beijing SPC Environment | Shenzhen vs. Sinocat Environmental Technology | Shenzhen vs. Pengxin International Mining | Shenzhen vs. Minmetals Capital 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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