Correlation Between Fujian Rongji and China State
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By analyzing existing cross correlation between Fujian Rongji Software and China State Construction, you can compare the effects of market volatilities on Fujian Rongji and China State 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 State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Rongji and China State.
Diversification Opportunities for Fujian Rongji and China State
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fujian and China is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Rongji Software and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Fujian Rongji i.e., Fujian Rongji and China State go up and down completely randomly.
Pair Corralation between Fujian Rongji and China State
Assuming the 90 days trading horizon Fujian Rongji Software is expected to generate 1.95 times more return on investment than China State. However, Fujian Rongji is 1.95 times more volatile than China State Construction. It trades about 0.01 of its potential returns per unit of risk. China State Construction is currently generating about 0.0 per unit of risk. If you would invest 925.00 in Fujian Rongji Software on November 27, 2024 and sell it today you would lose (142.00) from holding Fujian Rongji Software or give up 15.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Rongji Software vs. China State Construction
Performance |
| Timeline |
| Fujian Rongji Software |
| China State Construction |
Fujian Rongji and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Rongji and China State
The main advantage of trading using opposite Fujian Rongji and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Rongji position performs unexpectedly, China State 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 State will offset losses from the drop in China State's long position.| Fujian Rongji vs. Offshore Oil Engineering | Fujian Rongji vs. Anhui Huaren Health | Fujian Rongji vs. Humanwell Healthcare Group | Fujian Rongji vs. King Strong New Material |
| China State vs. TianJin 712 Communication | China State vs. INKON Life Technology | China State vs. Juneyao Airlines | China State vs. Elec Tech International 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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