Correlation Between FSPG Hi and Chongqing Rural
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By analyzing existing cross correlation between FSPG Hi Tech Co and Chongqing Rural Commercial, you can compare the effects of market volatilities on FSPG Hi and Chongqing Rural 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 Chongqing Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Chongqing Rural.
Diversification Opportunities for FSPG Hi and Chongqing Rural
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FSPG and Chongqing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Chongqing Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Rural Comm 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 Chongqing Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Rural Comm has no effect on the direction of FSPG Hi i.e., FSPG Hi and Chongqing Rural go up and down completely randomly.
Pair Corralation between FSPG Hi and Chongqing Rural
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 1.9 times more return on investment than Chongqing Rural. However, FSPG Hi is 1.9 times more volatile than Chongqing Rural Commercial. It trades about 0.25 of its potential returns per unit of risk. Chongqing Rural Commercial is currently generating about 0.13 per unit of risk. If you would invest 368.00 in FSPG Hi Tech Co on September 12, 2024 and sell it today you would earn a total of 328.00 from holding FSPG Hi Tech Co or generate 89.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Chongqing Rural Commercial
Performance |
| Timeline |
| FSPG Hi Tech |
| Chongqing Rural Comm |
FSPG Hi and Chongqing Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Chongqing Rural
The main advantage of trading using opposite FSPG Hi and Chongqing Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Chongqing Rural 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 Chongqing Rural will offset losses from the drop in Chongqing Rural's long position.| FSPG Hi vs. Zijin Mining Group | FSPG Hi vs. Wanhua Chemical Group | FSPG Hi vs. Baoshan Iron Steel | FSPG Hi vs. Shandong Gold Mining |
| Chongqing Rural vs. Zhengzhou Coal Mining | Chongqing Rural vs. Hainan Mining Co | Chongqing Rural vs. Jinhui Mining Co | Chongqing Rural vs. Easyhome New Retail |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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