Correlation Between Fujian Rongji and Chengdu Xinzhu
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By analyzing existing cross correlation between Fujian Rongji Software and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Fujian Rongji and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Rongji and Chengdu Xinzhu.
Diversification Opportunities for Fujian Rongji and Chengdu Xinzhu
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Chengdu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Rongji Software and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Fujian Rongji i.e., Fujian Rongji and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Fujian Rongji and Chengdu Xinzhu
Assuming the 90 days trading horizon Fujian Rongji Software is expected to generate 2.11 times more return on investment than Chengdu Xinzhu. However, Fujian Rongji is 2.11 times more volatile than Chengdu Xinzhu RoadBridge. It trades about 0.09 of its potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about -0.03 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 | 100.0% |
| Values | Daily Returns |
Fujian Rongji Software vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Fujian Rongji Software |
| Chengdu Xinzhu RoadBridge |
Fujian Rongji and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Rongji and Chengdu Xinzhu
The main advantage of trading using opposite Fujian Rongji and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Rongji position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's 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 |
| Chengdu Xinzhu vs. Guangdong Marubi Biotechnology | Chengdu Xinzhu vs. Xinjiang Baodi Mining | Chengdu Xinzhu vs. Everdisplay Optronics Shanghai | Chengdu Xinzhu vs. Hainan Mining Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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