Correlation Between FSPG Hi and Guangdong Skychem
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By analyzing existing cross correlation between FSPG Hi Tech Co and Guangdong Skychem Technology, you can compare the effects of market volatilities on FSPG Hi and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Guangdong Skychem.
Diversification Opportunities for FSPG Hi and Guangdong Skychem
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FSPG and Guangdong is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of FSPG Hi i.e., FSPG Hi and Guangdong Skychem go up and down completely randomly.
Pair Corralation between FSPG Hi and Guangdong Skychem
Assuming the 90 days trading horizon FSPG Hi is expected to generate 2.4 times less return on investment than Guangdong Skychem. But when comparing it to its historical volatility, FSPG Hi Tech Co is 1.72 times less risky than Guangdong Skychem. It trades about 0.03 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,452 in Guangdong Skychem Technology on October 30, 2024 and sell it today you would earn a total of 1,798 from holding Guangdong Skychem Technology or generate 32.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 79.38% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Guangdong Skychem Technology
Performance |
| Timeline |
| FSPG Hi Tech |
| Guangdong Skychem |
FSPG Hi and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Guangdong Skychem
The main advantage of trading using opposite FSPG Hi and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| FSPG Hi vs. GuoChuang Software Co | FSPG Hi vs. Hangzhou Pinming Software | FSPG Hi vs. China National Software | FSPG Hi vs. Beijing Sanyuan Foods |
| Guangdong Skychem vs. Sihui Fuji Electronics | Guangdong Skychem vs. Zijin Mining Group | Guangdong Skychem vs. Fujian Oriental Silver | Guangdong Skychem vs. TongFu Microelectronics 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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