Correlation Between Fujian Longzhou and Tianshui Huatian
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Tianshui Huatian Technology, you can compare the effects of market volatilities on Fujian Longzhou and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Tianshui Huatian.
Diversification Opportunities for Fujian Longzhou and Tianshui Huatian
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Tianshui is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Tianshui Huatian
Assuming the 90 days trading horizon Fujian Longzhou is expected to generate 1.37 times less return on investment than Tianshui Huatian. In addition to that, Fujian Longzhou is 1.15 times more volatile than Tianshui Huatian Technology. It trades about 0.05 of its total potential returns per unit of risk. Tianshui Huatian Technology is currently generating about 0.08 per unit of volatility. If you would invest 883.00 in Tianshui Huatian Technology on October 18, 2024 and sell it today you would earn a total of 238.00 from holding Tianshui Huatian Technology or generate 26.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Tianshui Huatian Technology
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Tianshui Huatian Tec |
Fujian Longzhou and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Tianshui Huatian
The main advantage of trading using opposite Fujian Longzhou and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| Fujian Longzhou vs. Gifore Agricultural Machinery | Fujian Longzhou vs. Ningbo Construction Co | Fujian Longzhou vs. Harvest Fund Management | Fujian Longzhou vs. AVIC Fund Management |
| Tianshui Huatian vs. Hengdian Entertainment Co | Tianshui Huatian vs. Fujian Longzhou Transportation | Tianshui Huatian vs. Anhui Transport Consulting | Tianshui Huatian vs. Ciwen Media Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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