Correlation Between Fujian Newland and Yangmei Chemical
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By analyzing existing cross correlation between Fujian Newland Computer and Yangmei Chemical Co, you can compare the effects of market volatilities on Fujian Newland and Yangmei Chemical 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 Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Yangmei Chemical.
Diversification Opportunities for Fujian Newland and Yangmei Chemical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Yangmei is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei 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 Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of Fujian Newland i.e., Fujian Newland and Yangmei Chemical go up and down completely randomly.
Pair Corralation between Fujian Newland and Yangmei Chemical
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 1.03 times more return on investment than Yangmei Chemical. However, Fujian Newland is 1.03 times more volatile than Yangmei Chemical Co. It trades about 0.05 of its potential returns per unit of risk. Yangmei Chemical Co is currently generating about -0.01 per unit of risk. If you would invest 1,290 in Fujian Newland Computer on September 5, 2024 and sell it today you would earn a total of 828.00 from holding Fujian Newland Computer or generate 64.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Yangmei Chemical Co
Performance |
| Timeline |
| Fujian Newland Computer |
| Yangmei Chemical |
Fujian Newland and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Yangmei Chemical
The main advantage of trading using opposite Fujian Newland and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Yangmei Chemical 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical's long position.| Fujian Newland vs. BYD Co Ltd | Fujian Newland vs. China Mobile Limited | Fujian Newland vs. Agricultural Bank of | Fujian Newland vs. Industrial and Commercial |
| Yangmei Chemical vs. Sichuan Jinshi Technology | Yangmei Chemical vs. FSPG Hi Tech Co | Yangmei Chemical vs. Wuhan Yangtze Communication | Yangmei Chemical vs. Fujian Newland Computer |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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