Correlation Between Fujian Longzhou and Shenzhen Centralcon
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Fujian Longzhou and Shenzhen Centralcon 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 Longzhou with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Shenzhen Centralcon.
Diversification Opportunities for Fujian Longzhou and Shenzhen Centralcon
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Shenzhen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Fujian Longzhou 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 Longzhou Transportation are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Shenzhen Centralcon
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to under-perform the Shenzhen Centralcon. In addition to that, Fujian Longzhou is 1.15 times more volatile than Shenzhen Centralcon Investment. It trades about -0.16 of its total potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.14 per unit of volatility. If you would invest 532.00 in Shenzhen Centralcon Investment on September 29, 2024 and sell it today you would lose (62.00) from holding Shenzhen Centralcon Investment or give up 11.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Shenzhen Centralcon |
Fujian Longzhou and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Shenzhen Centralcon
The main advantage of trading using opposite Fujian Longzhou and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Fujian Longzhou vs. Chengdu Kanghua Biological | Fujian Longzhou vs. Beijing Wantai Biological | Fujian Longzhou vs. Suzhou Novoprotein Scientific | Fujian Longzhou vs. Aluminum Corp of |
| Shenzhen Centralcon vs. Anhui Transport Consulting | Shenzhen Centralcon vs. Jiangsu Financial Leasing | Shenzhen Centralcon vs. Uroica Mining Safety | Shenzhen Centralcon vs. Fujian Longzhou Transportation |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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