Correlation Between Zhejiang Satellite and Fujian Rongji
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By analyzing existing cross correlation between Zhejiang Satellite Petrochemical and Fujian Rongji Software, you can compare the effects of market volatilities on Zhejiang Satellite and Fujian Rongji 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 Zhejiang Satellite with a short position of Fujian Rongji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Satellite and Fujian Rongji.
Diversification Opportunities for Zhejiang Satellite and Fujian Rongji
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhejiang and Fujian is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Satellite Petrochemic and Fujian Rongji Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Rongji Software and Zhejiang Satellite 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 Zhejiang Satellite Petrochemical are associated (or correlated) with Fujian Rongji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Rongji Software has no effect on the direction of Zhejiang Satellite i.e., Zhejiang Satellite and Fujian Rongji go up and down completely randomly.
Pair Corralation between Zhejiang Satellite and Fujian Rongji
Assuming the 90 days trading horizon Zhejiang Satellite is expected to generate 10.88 times less return on investment than Fujian Rongji. But when comparing it to its historical volatility, Zhejiang Satellite Petrochemical is 2.65 times less risky than Fujian Rongji. It trades about 0.12 of its potential returns per unit of risk. Fujian Rongji Software is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 592.00 in Fujian Rongji Software on November 28, 2024 and sell it today you would earn a total of 228.00 from holding Fujian Rongji Software or generate 38.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Satellite Petrochemic vs. Fujian Rongji Software
Performance |
| Timeline |
| Zhejiang Satellite |
| Fujian Rongji Software |
Zhejiang Satellite and Fujian Rongji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Satellite and Fujian Rongji
The main advantage of trading using opposite Zhejiang Satellite and Fujian Rongji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Satellite position performs unexpectedly, Fujian Rongji 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 Fujian Rongji will offset losses from the drop in Fujian Rongji's long position.| Zhejiang Satellite vs. Lecron Energy Saving | Zhejiang Satellite vs. Cicc Fund Management | Zhejiang Satellite vs. Agricultural Bank of | Zhejiang Satellite vs. Ningbo Tech Bank Co |
| Fujian Rongji vs. Hainan Haiqi Transportation | Fujian Rongji vs. Lander Sports Development | Fujian Rongji vs. Eastern Air Logistics | Fujian Rongji vs. Tianshan Aluminum Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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