Correlation Between HanS Laser and Fujian Rongji
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By analyzing existing cross correlation between HanS Laser Tech and Fujian Rongji Software, you can compare the effects of market volatilities on HanS Laser and Fujian Rongji 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 HanS Laser with a short position of Fujian Rongji. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Fujian Rongji.
Diversification Opportunities for HanS Laser and Fujian Rongji
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HanS and Fujian is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Fujian Rongji Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Rongji Software and HanS Laser 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 HanS Laser Tech are associated (or correlated) with Fujian Rongji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Rongji Software has no effect on the direction of HanS Laser i.e., HanS Laser and Fujian Rongji go up and down completely randomly.
Pair Corralation between HanS Laser and Fujian Rongji
Assuming the 90 days trading horizon HanS Laser is expected to generate 2.49 times less return on investment than Fujian Rongji. But when comparing it to its historical volatility, HanS Laser Tech is 1.24 times less risky than Fujian Rongji. It trades about 0.08 of its potential returns per unit of risk. Fujian Rongji Software is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 609.00 in Fujian Rongji Software on September 4, 2024 and sell it today you would earn a total of 85.00 from holding Fujian Rongji Software or generate 13.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Fujian Rongji Software
Performance |
| Timeline |
| HanS Laser Tech |
| Fujian Rongji Software |
HanS Laser and Fujian Rongji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Fujian Rongji
The main advantage of trading using opposite HanS Laser and Fujian Rongji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Fujian Rongji 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 Fujian Rongji will offset losses from the drop in Fujian Rongji's long position.| HanS Laser vs. Chengdu Kanghua Biological | HanS Laser vs. Beijing Wantai Biological | HanS Laser vs. Suzhou Novoprotein Scientific | HanS Laser vs. Aluminum Corp of |
| Fujian Rongji vs. New China Life | Fujian Rongji vs. Ming Yang Smart | Fujian Rongji vs. 159681 | Fujian Rongji vs. 159005 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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