Correlation Between Shenzhen Noposion and Fujian Oriental
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Fujian Oriental Silver, you can compare the effects of market volatilities on Shenzhen Noposion and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Fujian Oriental.
Diversification Opportunities for Shenzhen Noposion and Fujian Oriental
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Fujian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Fujian Oriental go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Fujian Oriental
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.69 times more return on investment than Fujian Oriental. However, Shenzhen Noposion Agrochemicals is 1.44 times less risky than Fujian Oriental. It trades about 0.08 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.01 per unit of risk. If you would invest 515.00 in Shenzhen Noposion Agrochemicals on September 14, 2024 and sell it today you would earn a total of 658.00 from holding Shenzhen Noposion Agrochemicals or generate 127.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Fujian Oriental Silver
Performance |
| Timeline |
| Shenzhen Noposion |
| Fujian Oriental Silver |
Shenzhen Noposion and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Fujian Oriental
The main advantage of trading using opposite Shenzhen Noposion and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Fujian Oriental 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 Oriental will offset losses from the drop in Fujian Oriental's long position.| Shenzhen Noposion vs. Gem Year Industrial Co | Shenzhen Noposion vs. Xinjiang Baodi Mining | Shenzhen Noposion vs. Gansu Yasheng Industrial | Shenzhen Noposion vs. Yunnan Xiyi Industrial |
| Fujian Oriental vs. Sanbo Hospital Management | Fujian Oriental vs. Lier Chemical Co | Fujian Oriental vs. Shenzhen Noposion Agrochemicals | Fujian Oriental vs. Meinian Onehealth Healthcare |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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