Correlation Between Fujian Longzhou and Zhejiang Hisoar
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Zhejiang Hisoar Pharmaceutical, you can compare the effects of market volatilities on Fujian Longzhou and Zhejiang Hisoar 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 Zhejiang Hisoar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Zhejiang Hisoar.
Diversification Opportunities for Fujian Longzhou and Zhejiang Hisoar
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Zhejiang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Zhejiang Hisoar Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Hisoar Phar 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 Zhejiang Hisoar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Hisoar Phar has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Zhejiang Hisoar go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Zhejiang Hisoar
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.76 times more return on investment than Zhejiang Hisoar. However, Fujian Longzhou is 1.76 times more volatile than Zhejiang Hisoar Pharmaceutical. It trades about -0.05 of its potential returns per unit of risk. Zhejiang Hisoar Pharmaceutical is currently generating about -0.19 per unit of risk. If you would invest 427.00 in Fujian Longzhou Transportation on October 26, 2024 and sell it today you would lose (17.00) from holding Fujian Longzhou Transportation or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Zhejiang Hisoar Pharmaceutical
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Zhejiang Hisoar Phar |
Fujian Longzhou and Zhejiang Hisoar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Zhejiang Hisoar
The main advantage of trading using opposite Fujian Longzhou and Zhejiang Hisoar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Zhejiang Hisoar 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 Zhejiang Hisoar will offset losses from the drop in Zhejiang Hisoar's long position.| Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. China Construction Bank | Fujian Longzhou vs. Bank of China |
| Zhejiang Hisoar vs. Hangzhou Arcvideo Technology | Zhejiang Hisoar vs. Fujian Longzhou Transportation | Zhejiang Hisoar vs. Zhuhai Comleader Information | Zhejiang Hisoar vs. Guangzhou Ruoyuchen Information |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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