Correlation Between Longxing Chemical and Do-Fluoride Chemicals
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By analyzing existing cross correlation between Longxing Chemical Stock and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Longxing Chemical and Do-Fluoride Chemicals 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 Longxing Chemical with a short position of Do-Fluoride Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Do-Fluoride Chemicals.
Diversification Opportunities for Longxing Chemical and Do-Fluoride Chemicals
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longxing and Do-Fluoride is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals and Longxing Chemical 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 Longxing Chemical Stock are associated (or correlated) with Do-Fluoride Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Longxing Chemical i.e., Longxing Chemical and Do-Fluoride Chemicals go up and down completely randomly.
Pair Corralation between Longxing Chemical and Do-Fluoride Chemicals
Assuming the 90 days trading horizon Longxing Chemical Stock is expected to generate 0.71 times more return on investment than Do-Fluoride Chemicals. However, Longxing Chemical Stock is 1.42 times less risky than Do-Fluoride Chemicals. It trades about 0.26 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.13 per unit of risk. If you would invest 494.00 in Longxing Chemical Stock on September 1, 2024 and sell it today you would earn a total of 71.00 from holding Longxing Chemical Stock or generate 14.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Longxing Chemical Stock |
| Do Fluoride Chemicals |
Longxing Chemical and Do-Fluoride Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Do-Fluoride Chemicals
The main advantage of trading using opposite Longxing Chemical and Do-Fluoride Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical position performs unexpectedly, Do-Fluoride Chemicals 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 Do-Fluoride Chemicals will offset losses from the drop in Do-Fluoride Chemicals' long position.| Longxing Chemical vs. Dongfeng Automobile Co | Longxing Chemical vs. Sunwave Communications Co | Longxing Chemical vs. Shanghai Metersbonwe FashionAccessories | Longxing Chemical vs. Zotye Automobile Co |
| Do-Fluoride Chemicals vs. Zijin Mining Group | Do-Fluoride Chemicals vs. Wanhua Chemical Group | Do-Fluoride Chemicals vs. Baoshan Iron Steel | Do-Fluoride Chemicals vs. Shandong Gold Mining |
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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