Correlation Between Fujian Newland and Shenzhen
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By analyzing existing cross correlation between Fujian Newland Computer and Shenzhen AV Display Co, you can compare the effects of market volatilities on Fujian Newland 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 Fujian Newland with a short position of Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Shenzhen.
Diversification Opportunities for Fujian Newland and Shenzhen
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Shenzhen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer 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 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 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 Fujian Newland i.e., Fujian Newland and Shenzhen go up and down completely randomly.
Pair Corralation between Fujian Newland and Shenzhen
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.73 times more return on investment than Shenzhen. However, Fujian Newland Computer is 1.36 times less risky than Shenzhen. It trades about 0.04 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about 0.02 per unit of risk. If you would invest 1,423 in Fujian Newland Computer on October 27, 2024 and sell it today you would earn a total of 576.00 from holding Fujian Newland Computer or generate 40.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Fujian Newland Computer |
| Shenzhen AV Display |
Fujian Newland and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Shenzhen
The main advantage of trading using opposite Fujian Newland and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland 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.| Fujian Newland vs. Shantui Construction Machinery | Fujian Newland vs. Senci Electric Machinery | Fujian Newland vs. Linzhou Heavy Machinery | Fujian Newland vs. Fujian Oriental Silver |
| Shenzhen vs. Yindu Kitchen Equipment | Shenzhen vs. Beijing Bewinner Communications | Shenzhen vs. Bank of Communications | Shenzhen vs. Aba Chemicals Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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