Correlation Between Fujian Longzhou and Do Fluoride
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Fujian Longzhou and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Do Fluoride.
Diversification Opportunities for Fujian Longzhou and Do Fluoride
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and 002407 is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Do Fluoride go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Do Fluoride
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.51 times more return on investment than Do Fluoride. However, Fujian Longzhou is 1.51 times more volatile than Do Fluoride Chemicals Co. It trades about 0.03 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.02 per unit of risk. If you would invest 413.00 in Fujian Longzhou Transportation on August 26, 2024 and sell it today you would earn a total of 42.00 from holding Fujian Longzhou Transportation or generate 10.17% 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. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Do Fluoride Chemicals |
Fujian Longzhou and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Do Fluoride
The main advantage of trading using opposite Fujian Longzhou and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Bank of China | Fujian Longzhou vs. China Construction Bank |
| Do Fluoride vs. Guangdong Liantai Environmental | Do Fluoride vs. Hang Xiao Steel | Do Fluoride vs. Shengda Mining Co | Do Fluoride vs. Uroica Mining Safety |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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