Correlation Between Fujian Longzhou and Allwin Telecommunicatio
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Allwin Telecommunication Co, you can compare the effects of market volatilities on Fujian Longzhou and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Allwin Telecommunicatio.
Diversification Opportunities for Fujian Longzhou and Allwin Telecommunicatio
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Allwin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Allwin Telecommunicatio
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.47 times more return on investment than Allwin Telecommunicatio. However, Fujian Longzhou is 1.47 times more volatile than Allwin Telecommunication Co. It trades about 0.34 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about 0.07 per unit of risk. If you would invest 427.00 in Fujian Longzhou Transportation on September 5, 2024 and sell it today you would earn a total of 164.00 from holding Fujian Longzhou Transportation or generate 38.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Allwin Telecommunicatio |
Fujian Longzhou and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Allwin Telecommunicatio
The main advantage of trading using opposite Fujian Longzhou and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Fujian Longzhou vs. Yunnan Jianzhijia Health Chain | Fujian Longzhou vs. Lotus Health Group | Fujian Longzhou vs. Everjoy Health Group | Fujian Longzhou vs. Shanghai Rongtai Health |
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 CEOs Directory module to screen CEOs from public companies around the world.
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