Correlation Between Fujian Rongji and Beijing Lanxum
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Rongji Software and Beijing Lanxum Tech, you can compare the effects of market volatilities on Fujian Rongji and Beijing Lanxum 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 Beijing Lanxum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Rongji and Beijing Lanxum.
Diversification Opportunities for Fujian Rongji and Beijing Lanxum
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Beijing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Rongji Software and Beijing Lanxum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lanxum Tech 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 Beijing Lanxum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lanxum Tech has no effect on the direction of Fujian Rongji i.e., Fujian Rongji and Beijing Lanxum go up and down completely randomly.
Pair Corralation between Fujian Rongji and Beijing Lanxum
Assuming the 90 days trading horizon Fujian Rongji is expected to generate 22.42 times less return on investment than Beijing Lanxum. But when comparing it to its historical volatility, Fujian Rongji Software is 1.47 times less risky than Beijing Lanxum. It trades about 0.0 of its potential returns per unit of risk. Beijing Lanxum Tech is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Beijing Lanxum Tech on September 4, 2024 and sell it today you would earn a total of 629.00 from holding Beijing Lanxum Tech or generate 160.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fujian Rongji Software vs. Beijing Lanxum Tech
Performance |
| Timeline |
| Fujian Rongji Software |
| Beijing Lanxum Tech |
Fujian Rongji and Beijing Lanxum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Rongji and Beijing Lanxum
The main advantage of trading using opposite Fujian Rongji and Beijing Lanxum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Rongji position performs unexpectedly, Beijing Lanxum 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 Beijing Lanxum will offset losses from the drop in Beijing Lanxum's long position.| Fujian Rongji vs. New China Life | Fujian Rongji vs. Ming Yang Smart | Fujian Rongji vs. 159681 | Fujian Rongji vs. 159005 |
| Beijing Lanxum vs. Ciwen Media Co | Beijing Lanxum vs. Lander Sports Development | Beijing Lanxum vs. JiShi Media Co | Beijing Lanxum vs. Dalian Zeus Entertainment |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance |