Correlation Between Fujian Newland and China Securities
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By analyzing existing cross correlation between Fujian Newland Computer and China Securities 800, you can compare the effects of market volatilities on Fujian Newland and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and China Securities.
Diversification Opportunities for Fujian Newland and China Securities
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and China is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Fujian Newland i.e., Fujian Newland and China Securities go up and down completely randomly.
Pair Corralation between Fujian Newland and China Securities
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 2.02 times more return on investment than China Securities. However, Fujian Newland is 2.02 times more volatile than China Securities 800. It trades about -0.05 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.1 per unit of risk. If you would invest 2,018 in Fujian Newland Computer on October 18, 2024 and sell it today you would lose (58.00) from holding Fujian Newland Computer or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fujian Newland Computer vs. China Securities 800
Performance |
| Timeline |
Fujian Newland and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Fujian Newland Computer
Pair trading matchups for Fujian Newland
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Fujian Newland and China Securities
The main advantage of trading using opposite Fujian Newland and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Fujian Newland vs. China Life Insurance | Fujian Newland vs. Cinda Securities Co | Fujian Newland vs. Piotech Inc A | Fujian Newland vs. Dongxing Sec 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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