Correlation Between Fujian Longzhou and Beijing Scitop
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Beijing Scitop Bio, you can compare the effects of market volatilities on Fujian Longzhou and Beijing Scitop 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 Beijing Scitop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Beijing Scitop.
Diversification Opportunities for Fujian Longzhou and Beijing Scitop
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Beijing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Beijing Scitop Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Scitop Bio 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 Beijing Scitop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Scitop Bio has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Beijing Scitop go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Beijing Scitop
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.65 times more return on investment than Beijing Scitop. However, Fujian Longzhou is 1.65 times more volatile than Beijing Scitop Bio. It trades about 0.01 of its potential returns per unit of risk. Beijing Scitop Bio is currently generating about 0.0 per unit of risk. If you would invest 666.00 in Fujian Longzhou Transportation on September 14, 2024 and sell it today you would lose (79.00) from holding Fujian Longzhou Transportation or give up 11.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Beijing Scitop Bio
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Beijing Scitop Bio |
Fujian Longzhou and Beijing Scitop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Beijing Scitop
The main advantage of trading using opposite Fujian Longzhou and Beijing Scitop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Beijing Scitop 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 Beijing Scitop will offset losses from the drop in Beijing Scitop's long position.| Fujian Longzhou vs. New China Life | Fujian Longzhou vs. Ming Yang Smart | Fujian Longzhou vs. 159681 | Fujian Longzhou vs. 159005 |
| Beijing Scitop vs. Industrial and Commercial | Beijing Scitop vs. China Construction Bank | Beijing Scitop vs. Bank of China | Beijing Scitop vs. Agricultural Bank of |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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