Correlation Between Fujian Longzhou and Anshan Senyuan
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Anshan Senyuan Road, you can compare the effects of market volatilities on Fujian Longzhou and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Anshan Senyuan.
Diversification Opportunities for Fujian Longzhou and Anshan Senyuan
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fujian and Anshan is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Anshan Senyuan go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Anshan Senyuan
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.22 times more return on investment than Anshan Senyuan. However, Fujian Longzhou is 1.22 times more volatile than Anshan Senyuan Road. It trades about -0.13 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.31 per unit of risk. If you would invest 529.00 in Fujian Longzhou Transportation on October 11, 2024 and sell it today you would lose (117.00) from holding Fujian Longzhou Transportation or give up 22.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Anshan Senyuan Road
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Anshan Senyuan Road |
Fujian Longzhou and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Anshan Senyuan
The main advantage of trading using opposite Fujian Longzhou and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.| Fujian Longzhou vs. AVCON Information Tech | Fujian Longzhou vs. CITIC Guoan Information | Fujian Longzhou vs. Sublime China Information | Fujian Longzhou vs. Digital China Information |
| Anshan Senyuan vs. Beijing Mainstreets Investment | Anshan Senyuan vs. Ye Chiu Metal | Anshan Senyuan vs. Rising Nonferrous Metals | Anshan Senyuan vs. Guangdong Jingyi Metal |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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