Correlation Between Fujian Newland and CSSC Offshore
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By analyzing existing cross correlation between Fujian Newland Computer and CSSC Offshore Marine, you can compare the effects of market volatilities on Fujian Newland and CSSC Offshore 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 CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and CSSC Offshore.
Diversification Opportunities for Fujian Newland and CSSC Offshore
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and CSSC is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Fujian Newland i.e., Fujian Newland and CSSC Offshore go up and down completely randomly.
Pair Corralation between Fujian Newland and CSSC Offshore
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 1.08 times more return on investment than CSSC Offshore. However, Fujian Newland is 1.08 times more volatile than CSSC Offshore Marine. It trades about 0.05 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.02 per unit of risk. If you would invest 1,329 in Fujian Newland Computer on August 26, 2024 and sell it today you would earn a total of 676.00 from holding Fujian Newland Computer or generate 50.87% 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. CSSC Offshore Marine
Performance |
| Timeline |
| Fujian Newland Computer |
| CSSC Offshore Marine |
Fujian Newland and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and CSSC Offshore
The main advantage of trading using opposite Fujian Newland and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.| Fujian Newland vs. Songz Automobile Air | Fujian Newland vs. Jiajia Food Group | Fujian Newland vs. Sinomach Automobile Co | Fujian Newland vs. Youyou Foods Co |
| CSSC Offshore vs. Jiangyin Jianghua Microelectronics | CSSC Offshore vs. Fuzhou Rockchip Electronics | CSSC Offshore vs. Kunshan Guoli Electronic | CSSC Offshore vs. Bomin Electronics 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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