Correlation Between Fujian Longzhou and Zhejiang Dahua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Longzhou Transportation and Zhejiang Dahua Technology, you can compare the effects of market volatilities on Fujian Longzhou and Zhejiang Dahua 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 Dahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Zhejiang Dahua.
Diversification Opportunities for Fujian Longzhou and Zhejiang Dahua
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Zhejiang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Zhejiang Dahua Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Dahua Technology 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 Dahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Dahua Technology has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Zhejiang Dahua go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Zhejiang Dahua
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 2.01 times more return on investment than Zhejiang Dahua. However, Fujian Longzhou is 2.01 times more volatile than Zhejiang Dahua Technology. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Dahua Technology is currently generating about -0.13 per unit of risk. If you would invest 529.00 in Fujian Longzhou Transportation on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Fujian Longzhou Transportation or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Zhejiang Dahua Technology
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Zhejiang Dahua Technology |
Fujian Longzhou and Zhejiang Dahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Zhejiang Dahua
The main advantage of trading using opposite Fujian Longzhou and Zhejiang Dahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Zhejiang Dahua 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 Dahua will offset losses from the drop in Zhejiang Dahua's long position.| Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Bank of China | Fujian Longzhou vs. PetroChina Co Ltd |
| Zhejiang Dahua vs. Guangdong Wens Foodstuff | Zhejiang Dahua vs. Beijing Mainstreets Investment | Zhejiang Dahua vs. Shenzhen Topway Video | Zhejiang Dahua vs. Youyou Foods 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| CEOs Directory Screen CEOs from public companies around the world |