Correlation Between Fujian Longzhou and Ciwen Media
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Ciwen Media Co, you can compare the effects of market volatilities on Fujian Longzhou and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Ciwen Media.
Diversification Opportunities for Fujian Longzhou and Ciwen Media
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Ciwen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Ciwen Media go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Ciwen Media
Assuming the 90 days trading horizon Fujian Longzhou is expected to generate 1.73 times less return on investment than Ciwen Media. But when comparing it to its historical volatility, Fujian Longzhou Transportation is 1.1 times less risky than Ciwen Media. It trades about 0.04 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 387.00 in Ciwen Media Co on November 3, 2024 and sell it today you would earn a total of 237.00 from holding Ciwen Media Co or generate 61.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Ciwen Media Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Ciwen Media |
Fujian Longzhou and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Ciwen Media
The main advantage of trading using opposite Fujian Longzhou and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| Fujian Longzhou vs. Beijing Baolande Software | Fujian Longzhou vs. Fiberhome Telecommunication Technologies | Fujian Longzhou vs. Jiangsu Hoperun Software | Fujian Longzhou vs. Zhangjiagang Elegant Home |
| Ciwen Media vs. Humanwell Healthcare Group | Ciwen Media vs. Xinjiang Beixin RoadBridge | Ciwen Media vs. Hainan Haiqi Transportation | Ciwen Media vs. Chengdu Xinzhu RoadBridge |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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