Correlation Between Shanghai Yaoji and Foxconn Industrial
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Foxconn Industrial Internet, you can compare the effects of market volatilities on Shanghai Yaoji and Foxconn Industrial 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 Shanghai Yaoji with a short position of Foxconn Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Foxconn Industrial.
Diversification Opportunities for Shanghai Yaoji and Foxconn Industrial
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Foxconn is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Foxconn Industrial Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foxconn Industrial and Shanghai Yaoji 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 Shanghai Yaoji Playing are associated (or correlated) with Foxconn Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foxconn Industrial has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Foxconn Industrial go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Foxconn Industrial
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 2.0 times more return on investment than Foxconn Industrial. However, Shanghai Yaoji is 2.0 times more volatile than Foxconn Industrial Internet. It trades about 0.1 of its potential returns per unit of risk. Foxconn Industrial Internet is currently generating about -0.33 per unit of risk. If you would invest 3,113 in Shanghai Yaoji Playing on September 14, 2024 and sell it today you would earn a total of 254.00 from holding Shanghai Yaoji Playing or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Foxconn Industrial Internet
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Foxconn Industrial |
Shanghai Yaoji and Foxconn Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Foxconn Industrial
The main advantage of trading using opposite Shanghai Yaoji and Foxconn Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Foxconn Industrial 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 Foxconn Industrial will offset losses from the drop in Foxconn Industrial's long position.| Shanghai Yaoji vs. Lutian Machinery Co | Shanghai Yaoji vs. China Longyuan Power | Shanghai Yaoji vs. PetroChina Co Ltd | Shanghai Yaoji vs. Bank of China |
| Foxconn Industrial vs. China Sports Industry | Foxconn Industrial vs. Harbin Air Conditioning | Foxconn Industrial vs. Liaoning Chengda Biotechnology | Foxconn Industrial vs. Shanghai Yaoji Playing |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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