Correlation Between Shenzhen Hifuture and Fuzhou Rockchip
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Shenzhen Hifuture and Fuzhou Rockchip 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 Shenzhen Hifuture with a short position of Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Fuzhou Rockchip.
Diversification Opportunities for Shenzhen Hifuture and Fuzhou Rockchip
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Fuzhou is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec and Shenzhen Hifuture 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 Shenzhen Hifuture Electric are associated (or correlated) with Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Fuzhou Rockchip
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 8.08 times less return on investment than Fuzhou Rockchip. In addition to that, Shenzhen Hifuture is 1.12 times more volatile than Fuzhou Rockchip Electronics. It trades about 0.0 of its total potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.04 per unit of volatility. If you would invest 6,891 in Fuzhou Rockchip Electronics on September 13, 2024 and sell it today you would earn a total of 2,502 from holding Fuzhou Rockchip Electronics or generate 36.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Shenzhen Hifuture |
| Fuzhou Rockchip Elec |
Shenzhen Hifuture and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Fuzhou Rockchip
The main advantage of trading using opposite Shenzhen Hifuture and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Xinya Electronic Co | Shenzhen Hifuture vs. Gansu Yasheng Industrial | Shenzhen Hifuture vs. Shenzhen Clou Electronics |
| Fuzhou Rockchip vs. Nanjing Putian Telecommunications | Fuzhou Rockchip vs. Tianjin Realty Development | Fuzhou Rockchip vs. Kangyue Technology Co | Fuzhou Rockchip vs. Shenzhen Hifuture Electric |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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