Correlation Between Fujian Newland and Sunny Loan
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By analyzing existing cross correlation between Fujian Newland Computer and Sunny Loan Top, you can compare the effects of market volatilities on Fujian Newland and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Sunny Loan.
Diversification Opportunities for Fujian Newland and Sunny Loan
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Sunny is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Fujian Newland i.e., Fujian Newland and Sunny Loan go up and down completely randomly.
Pair Corralation between Fujian Newland and Sunny Loan
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 1.01 times more return on investment than Sunny Loan. However, Fujian Newland is 1.01 times more volatile than Sunny Loan Top. It trades about 0.25 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.12 per unit of risk. If you would invest 1,649 in Fujian Newland Computer on August 25, 2024 and sell it today you would earn a total of 356.00 from holding Fujian Newland Computer or generate 21.59% 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. Sunny Loan Top
Performance |
| Timeline |
| Fujian Newland Computer |
| Sunny Loan Top |
Fujian Newland and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Sunny Loan
The main advantage of trading using opposite Fujian Newland and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan'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 |
| Sunny Loan vs. Kweichow Moutai Co | Sunny Loan vs. Contemporary Amperex Technology | Sunny Loan vs. G bits Network Technology | Sunny Loan vs. BYD Co Ltd |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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