Correlation Between Fujian Longzhou and Zhejiang Satellite
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Longzhou Transportation and Zhejiang Satellite Petrochemical, you can compare the effects of market volatilities on Fujian Longzhou and Zhejiang Satellite 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 Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Zhejiang Satellite.
Diversification Opportunities for Fujian Longzhou and Zhejiang Satellite
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Zhejiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Zhejiang Satellite Petrochemic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Satellite 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 Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Satellite has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Zhejiang Satellite go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Zhejiang Satellite
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 2.67 times more return on investment than Zhejiang Satellite. However, Fujian Longzhou is 2.67 times more volatile than Zhejiang Satellite Petrochemical. It trades about 0.12 of its potential returns per unit of risk. Zhejiang Satellite Petrochemical is currently generating about -0.14 per unit of risk. If you would invest 436.00 in Fujian Longzhou Transportation on August 30, 2024 and sell it today you would earn a total of 40.00 from holding Fujian Longzhou Transportation or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Zhejiang Satellite Petrochemic
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Zhejiang Satellite |
Fujian Longzhou and Zhejiang Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Zhejiang Satellite
The main advantage of trading using opposite Fujian Longzhou and Zhejiang Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Zhejiang Satellite 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 Satellite will offset losses from the drop in Zhejiang Satellite's long position.| Fujian Longzhou vs. China State Construction | Fujian Longzhou vs. Poly Real Estate | Fujian Longzhou vs. China Vanke Co | Fujian Longzhou vs. China Merchants Shekou |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |