Correlation Between Fujian Longzhou and Songz Automobile
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Songz Automobile Air, you can compare the effects of market volatilities on Fujian Longzhou and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Songz Automobile.
Diversification Opportunities for Fujian Longzhou and Songz Automobile
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Songz is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Songz Automobile go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Songz Automobile
Assuming the 90 days trading horizon Fujian Longzhou is expected to generate 2.28 times less return on investment than Songz Automobile. In addition to that, Fujian Longzhou is 1.63 times more volatile than Songz Automobile Air. It trades about 0.08 of its total potential returns per unit of risk. Songz Automobile Air is currently generating about 0.29 per unit of volatility. If you would invest 618.00 in Songz Automobile Air on November 6, 2024 and sell it today you would earn a total of 51.00 from holding Songz Automobile Air or generate 8.25% 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. Songz Automobile Air
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Songz Automobile Air |
Fujian Longzhou and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Songz Automobile
The main advantage of trading using opposite Fujian Longzhou and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Fujian Longzhou vs. Harbin Hatou Investment | Fujian Longzhou vs. Zoje Resources Investment | Fujian Longzhou vs. China Asset Management | Fujian Longzhou vs. Tieling Newcity Investment |
| Songz Automobile vs. Chongqing Changan Automobile | Songz Automobile vs. Guangdong Jingyi Metal | Songz Automobile vs. Sinomach Automobile Co | Songz Automobile vs. Changchun Engley Automobile |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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