Correlation Between Blue Sail and Fuzhou Rockchip
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By analyzing existing cross correlation between Blue Sail Medical and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Blue Sail 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 Blue Sail with a short position of Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Fuzhou Rockchip.
Diversification Opportunities for Blue Sail and Fuzhou Rockchip
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blue and Fuzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical 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 Blue Sail 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 Blue Sail Medical 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 Blue Sail i.e., Blue Sail and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Blue Sail and Fuzhou Rockchip
Assuming the 90 days trading horizon Blue Sail Medical is expected to generate 0.75 times more return on investment than Fuzhou Rockchip. However, Blue Sail Medical is 1.34 times less risky than Fuzhou Rockchip. It trades about 0.07 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about -0.12 per unit of risk. If you would invest 543.00 in Blue Sail Medical on August 31, 2024 and sell it today you would earn a total of 13.00 from holding Blue Sail Medical or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Sail Medical vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Blue Sail Medical |
| Fuzhou Rockchip Elec |
Blue Sail and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Fuzhou Rockchip
The main advantage of trading using opposite Blue Sail and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail 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.| Blue Sail vs. PetroChina Co Ltd | Blue Sail vs. China Mobile Limited | Blue Sail vs. Ping An Insurance | Blue Sail vs. China Petroleum Chemical |
| Fuzhou Rockchip vs. Threes Company Media | Fuzhou Rockchip vs. FSPG Hi Tech Co | Fuzhou Rockchip vs. Inly Media Co | Fuzhou Rockchip vs. ChengDu Hi Tech Development |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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