Correlation Between Fujian Newland and Maoming Petro
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By analyzing existing cross correlation between Fujian Newland Computer and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Fujian Newland and Maoming Petro 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 Fujian Newland with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Maoming Petro.
Diversification Opportunities for Fujian Newland and Maoming Petro
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Maoming is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and Fujian Newland 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 Fujian Newland Computer are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Fujian Newland i.e., Fujian Newland and Maoming Petro go up and down completely randomly.
Pair Corralation between Fujian Newland and Maoming Petro
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.97 times more return on investment than Maoming Petro. However, Fujian Newland Computer is 1.04 times less risky than Maoming Petro. It trades about -0.21 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.46 per unit of risk. If you would invest 2,116 in Fujian Newland Computer on October 16, 2024 and sell it today you would lose (217.00) from holding Fujian Newland Computer or give up 10.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fujian Newland Computer vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Fujian Newland Computer |
| Maoming Petro Chemical |
Fujian Newland and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Maoming Petro
The main advantage of trading using opposite Fujian Newland and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Fujian Newland vs. Shanghai V Test Semiconductor | Fujian Newland vs. GRINM Semiconductor Materials | Fujian Newland vs. Southchip Semiconductor Technology | Fujian Newland vs. Giantec Semiconductor Corp |
| Maoming Petro vs. Shandong Rike Chemical | Maoming Petro vs. City Development Environment | Maoming Petro vs. Eit Environmental Development | Maoming Petro vs. Changjiang Jinggong Steel |
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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