Correlation Between Fujian Newland and Eyebright Medical
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By analyzing existing cross correlation between Fujian Newland Computer and Eyebright Medical Technology, you can compare the effects of market volatilities on Fujian Newland and Eyebright Medical 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Eyebright Medical.
Diversification Opportunities for Fujian Newland and Eyebright Medical
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and Eyebright is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Fujian Newland i.e., Fujian Newland and Eyebright Medical go up and down completely randomly.
Pair Corralation between Fujian Newland and Eyebright Medical
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.78 times more return on investment than Eyebright Medical. However, Fujian Newland Computer is 1.28 times less risky than Eyebright Medical. It trades about 0.04 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about -0.03 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Eyebright Medical Technology
Performance |
| Timeline |
| Fujian Newland Computer |
| Eyebright Medical |
Fujian Newland and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Eyebright Medical
The main advantage of trading using opposite Fujian Newland and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Eyebright Medical 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 Eyebright Medical will offset losses from the drop in Eyebright Medical'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 |
| Eyebright Medical vs. Agricultural Bank of | Eyebright Medical vs. Industrial and Commercial | Eyebright Medical vs. Bank of China | Eyebright Medical vs. China Construction Bank |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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