Correlation Between Fujian Rongji and Xinjiang Zhongtai
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By analyzing existing cross correlation between Fujian Rongji Software and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Fujian Rongji and Xinjiang Zhongtai 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 Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Rongji and Xinjiang Zhongtai.
Diversification Opportunities for Fujian Rongji and Xinjiang Zhongtai
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Xinjiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Rongji Software and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai 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 Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Fujian Rongji i.e., Fujian Rongji and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Fujian Rongji and Xinjiang Zhongtai
Assuming the 90 days trading horizon Fujian Rongji Software is expected to generate 2.15 times more return on investment than Xinjiang Zhongtai. However, Fujian Rongji is 2.15 times more volatile than Xinjiang Zhongtai Chemical. It trades about 0.2 of its potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about 0.18 per unit of risk. If you would invest 722.00 in Fujian Rongji Software on September 14, 2024 and sell it today you would earn a total of 135.00 from holding Fujian Rongji Software or generate 18.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Rongji Software vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Fujian Rongji Software |
| Xinjiang Zhongtai |
Fujian Rongji and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Rongji and Xinjiang Zhongtai
The main advantage of trading using opposite Fujian Rongji and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Rongji position performs unexpectedly, Xinjiang Zhongtai 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 Xinjiang Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.| Fujian Rongji vs. Zhuhai Comleader Information | Fujian Rongji vs. Gem Year Industrial Co | Fujian Rongji vs. Hainan Mining Co | Fujian Rongji vs. Hangzhou Gisway Information |
| Xinjiang Zhongtai vs. Linewell Software Co | Xinjiang Zhongtai vs. Hainan Mining Co | Xinjiang Zhongtai vs. Chenzhou Jingui Silver | Xinjiang Zhongtai vs. Fujian Rongji Software |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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