Correlation Between Fujian Longzhou and Sunny Loan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Longzhou Transportation and Sunny Loan Top, you can compare the effects of market volatilities on Fujian Longzhou and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Sunny Loan.
Diversification Opportunities for Fujian Longzhou and Sunny Loan
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Sunny is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Sunny Loan go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Sunny Loan
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 0.97 times more return on investment than Sunny Loan. However, Fujian Longzhou Transportation is 1.03 times less risky than Sunny Loan. It trades about -0.07 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.3 per unit of risk. If you would invest 425.00 in Fujian Longzhou Transportation on November 3, 2024 and sell it today you would lose (20.00) from holding Fujian Longzhou Transportation or give up 4.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Sunny Loan Top
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Sunny Loan Top |
Fujian Longzhou and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Sunny Loan
The main advantage of trading using opposite Fujian Longzhou and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Fujian Longzhou vs. Beijing Baolande Software | Fujian Longzhou vs. Fiberhome Telecommunication Technologies | Fujian Longzhou vs. Jiangsu Hoperun Software | Fujian Longzhou vs. Zhangjiagang Elegant Home |
| Sunny Loan vs. Nanjing Putian Telecommunications | Sunny Loan vs. Cloud Live Technology | Sunny Loan vs. Shenzhen Coship Electronics | Sunny Loan vs. Shenyang Huitian Thermal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |