Correlation Between Shenzhen Noposion and FSPG Hi-Tech
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and FSPG Hi Tech Co, you can compare the effects of market volatilities on Shenzhen Noposion and FSPG Hi-Tech 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 Noposion with a short position of FSPG Hi-Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and FSPG Hi-Tech.
Diversification Opportunities for Shenzhen Noposion and FSPG Hi-Tech
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and FSPG is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech and Shenzhen Noposion 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 Noposion Agrochemicals are associated (or correlated) with FSPG Hi-Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and FSPG Hi-Tech go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and FSPG Hi-Tech
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the FSPG Hi-Tech. In addition to that, Shenzhen Noposion is 1.39 times more volatile than FSPG Hi Tech Co. It trades about -0.04 of its total potential returns per unit of risk. FSPG Hi Tech Co is currently generating about 0.01 per unit of volatility. If you would invest 559.00 in FSPG Hi Tech Co on November 6, 2024 and sell it today you would lose (1.00) from holding FSPG Hi Tech Co or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Shenzhen Noposion |
| FSPG Hi Tech |
Shenzhen Noposion and FSPG Hi-Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and FSPG Hi-Tech
The main advantage of trading using opposite Shenzhen Noposion and FSPG Hi-Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, FSPG Hi-Tech 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 FSPG Hi-Tech will offset losses from the drop in FSPG Hi-Tech's long position.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
| FSPG Hi-Tech vs. Shenyang Chemical Industry | FSPG Hi-Tech vs. Liuzhou Chemical Industry | FSPG Hi-Tech vs. Hengli Petrochemical Co | FSPG Hi-Tech vs. Hangzhou Arcvideo Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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