Correlation Between Do Fluoride and Fujian Longzhou
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Do Fluoride and Fujian Longzhou 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 Do Fluoride with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Fujian Longzhou.
Diversification Opportunities for Do Fluoride and Fujian Longzhou
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002407 and Fujian is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran and Do Fluoride 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 Do Fluoride Chemicals Co are associated (or correlated) with Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Do Fluoride i.e., Do Fluoride and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Do Fluoride and Fujian Longzhou
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to under-perform the Fujian Longzhou. But the stock apears to be less risky and, when comparing its historical volatility, Do Fluoride Chemicals Co is 1.47 times less risky than Fujian Longzhou. The stock trades about -0.04 of its potential returns per unit of risk. The Fujian Longzhou Transportation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 468.00 in Fujian Longzhou Transportation on August 26, 2024 and sell it today you would lose (13.00) from holding Fujian Longzhou Transportation or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Fujian Longzhou Tran |
Do Fluoride and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Fujian Longzhou
The main advantage of trading using opposite Do Fluoride and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride position performs unexpectedly, Fujian Longzhou 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 Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Do Fluoride vs. Guangdong Liantai Environmental | Do Fluoride vs. Hang Xiao Steel | Do Fluoride vs. Shengda Mining Co | Do Fluoride vs. Uroica Mining Safety |
| Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Bank of China | Fujian Longzhou vs. China Construction Bank |
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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