Correlation Between Fujian Longzhou and Contec Medical
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Contec Medical Systems, you can compare the effects of market volatilities on Fujian Longzhou and Contec Medical 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 Contec Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Contec Medical.
Diversification Opportunities for Fujian Longzhou and Contec Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Contec is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Contec Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contec Medical Systems 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 Contec Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contec Medical Systems has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Contec Medical go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Contec Medical
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.54 times more return on investment than Contec Medical. However, Fujian Longzhou is 1.54 times more volatile than Contec Medical Systems. It trades about 0.13 of its potential returns per unit of risk. Contec Medical Systems is currently generating about -0.14 per unit of risk. If you would invest 443.00 in Fujian Longzhou Transportation on August 29, 2024 and sell it today you would earn a total of 47.00 from holding Fujian Longzhou Transportation or generate 10.61% 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. Contec Medical Systems
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Contec Medical Systems |
Fujian Longzhou and Contec Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Contec Medical
The main advantage of trading using opposite Fujian Longzhou and Contec Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Contec Medical 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 Contec Medical will offset losses from the drop in Contec Medical's long position.| Fujian Longzhou vs. PetroChina Co Ltd | Fujian Longzhou vs. China State Construction | Fujian Longzhou vs. China Mobile Limited | Fujian Longzhou vs. Industrial and Commercial |
| Contec Medical vs. Industrial and Commercial | Contec Medical vs. China Construction Bank | Contec Medical vs. Agricultural Bank of | Contec Medical vs. Bank of China |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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