Correlation Between Fujian Longzhou and China Nonferrous
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By analyzing existing cross correlation between Fujian Longzhou Transportation and China Nonferrous Metal, you can compare the effects of market volatilities on Fujian Longzhou and China Nonferrous 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 China Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and China Nonferrous.
Diversification Opportunities for Fujian Longzhou and China Nonferrous
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and China is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and China Nonferrous Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Nonferrous Metal 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 China Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Nonferrous Metal has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and China Nonferrous go up and down completely randomly.
Pair Corralation between Fujian Longzhou and China Nonferrous
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.77 times more return on investment than China Nonferrous. However, Fujian Longzhou is 1.77 times more volatile than China Nonferrous Metal. It trades about 0.01 of its potential returns per unit of risk. China Nonferrous Metal is currently generating about -0.01 per unit of risk. If you would invest 457.00 in Fujian Longzhou Transportation on October 16, 2024 and sell it today you would lose (60.00) from holding Fujian Longzhou Transportation or give up 13.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. China Nonferrous Metal
Performance |
| Timeline |
| Fujian Longzhou Tran |
| China Nonferrous Metal |
Fujian Longzhou and China Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and China Nonferrous
The main advantage of trading using opposite Fujian Longzhou and China Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, China Nonferrous 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 Nonferrous will offset losses from the drop in China Nonferrous' long position.| Fujian Longzhou vs. Hygon Information Technology | Fujian Longzhou vs. Hangzhou Gisway Information | Fujian Longzhou vs. Emdoor Information Co | Fujian Longzhou vs. Sharetronic Data Technology |
| China Nonferrous vs. Humanwell Healthcare Group | China Nonferrous vs. Yunnan Jianzhijia Health Chain | China Nonferrous vs. Shandong Sinoglory Health | China Nonferrous 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 Stocks Directory module to find actively traded stocks across global markets.
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