Correlation Between Fujian Rongji and China Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Rongji Software and China Securities 800, you can compare the effects of market volatilities on Fujian Rongji and China Securities 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 Fujian Rongji with a short position of China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Rongji and China Securities.
Diversification Opportunities for Fujian Rongji and China Securities
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and China is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Rongji Software and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 and Fujian Rongji 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 Fujian Rongji Software are associated (or correlated) with China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Fujian Rongji i.e., Fujian Rongji and China Securities go up and down completely randomly.
Pair Corralation between Fujian Rongji and China Securities
Assuming the 90 days trading horizon Fujian Rongji Software is expected to generate 3.95 times more return on investment than China Securities. However, Fujian Rongji is 3.95 times more volatile than China Securities 800. It trades about 0.09 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.11 per unit of risk. If you would invest 590.00 in Fujian Rongji Software on August 29, 2024 and sell it today you would earn a total of 48.00 from holding Fujian Rongji Software or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fujian Rongji Software vs. China Securities 800
Performance |
| Timeline |
Fujian Rongji and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Fujian Rongji Software
Pair trading matchups for Fujian Rongji
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Fujian Rongji and China Securities
The main advantage of trading using opposite Fujian Rongji and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Rongji position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Fujian Rongji vs. Dalian Thermal Power | Fujian Rongji vs. Shandong Mining Machinery | Fujian Rongji vs. Chongqing Changan Automobile | Fujian Rongji vs. Shanghai Yanpu Metal |
| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |