Correlation Between Fujian Rongji and Beijing Wandong
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By analyzing existing cross correlation between Fujian Rongji Software and Beijing Wandong Medical, you can compare the effects of market volatilities on Fujian Rongji and Beijing Wandong 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 Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Rongji and Beijing Wandong.
Diversification Opportunities for Fujian Rongji and Beijing Wandong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Beijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Rongji Software and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong Medical 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 Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of Fujian Rongji i.e., Fujian Rongji and Beijing Wandong go up and down completely randomly.
Pair Corralation between Fujian Rongji and Beijing Wandong
Assuming the 90 days trading horizon Fujian Rongji Software is expected to generate 1.45 times more return on investment than Beijing Wandong. However, Fujian Rongji is 1.45 times more volatile than Beijing Wandong Medical. It trades about 0.02 of its potential returns per unit of risk. Beijing Wandong Medical is currently generating about 0.01 per unit of risk. If you would invest 748.00 in Fujian Rongji Software on September 12, 2024 and sell it today you would earn a total of 19.00 from holding Fujian Rongji Software or generate 2.54% 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. Beijing Wandong Medical
Performance |
| Timeline |
| Fujian Rongji Software |
| Beijing Wandong Medical |
Fujian Rongji and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Rongji and Beijing Wandong
The main advantage of trading using opposite Fujian Rongji and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Rongji position performs unexpectedly, Beijing Wandong 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 Wandong will offset losses from the drop in Beijing Wandong's long position.| Fujian Rongji vs. Beijing Wandong Medical | Fujian Rongji vs. Sinomach Automobile Co | Fujian Rongji vs. Guangdong Shenglu Telecommunication | Fujian Rongji vs. Ningbo MedicalSystem Biotechnology |
| Beijing Wandong vs. Cultural Investment Holdings | Beijing Wandong vs. Gome Telecom Equipment | Beijing Wandong vs. Holitech Technology Co | Beijing Wandong vs. Zotye Automobile 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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