Correlation Between Fujian Longzhou and NAURA Technology
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By analyzing existing cross correlation between Fujian Longzhou Transportation and NAURA Technology Group, you can compare the effects of market volatilities on Fujian Longzhou and NAURA Technology 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 NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and NAURA Technology.
Diversification Opportunities for Fujian Longzhou and NAURA Technology
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and NAURA is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA 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 NAURA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAURA Technology has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and NAURA Technology go up and down completely randomly.
Pair Corralation between Fujian Longzhou and NAURA Technology
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 2.41 times more return on investment than NAURA Technology. However, Fujian Longzhou is 2.41 times more volatile than NAURA Technology Group. It trades about 0.19 of its potential returns per unit of risk. NAURA Technology Group is currently generating about -0.25 per unit of risk. If you would invest 443.00 in Fujian Longzhou Transportation on September 19, 2024 and sell it today you would earn a total of 75.00 from holding Fujian Longzhou Transportation or generate 16.93% 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. NAURA Technology Group
Performance |
| Timeline |
| Fujian Longzhou Tran |
| NAURA Technology |
Fujian Longzhou and NAURA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and NAURA Technology
The main advantage of trading using opposite Fujian Longzhou and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, NAURA Technology 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 NAURA Technology will offset losses from the drop in NAURA Technology's long position.| Fujian Longzhou vs. Oppein Home Group | Fujian Longzhou vs. Zhangjiagang Elegant Home | Fujian Longzhou vs. Ningbo Ligong Online | Fujian Longzhou vs. Jinhe Biotechnology Co |
| NAURA Technology vs. Kangping Technology Co | NAURA Technology vs. Guangzhou KingTeller Technology | NAURA Technology vs. Linewell Software Co | NAURA Technology vs. Fujian Longzhou Transportation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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