Correlation Between Fujian Longzhou and Shaanxi Broadcast
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Fujian Longzhou and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Shaanxi Broadcast.
Diversification Opportunities for Fujian Longzhou and Shaanxi Broadcast
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Shaanxi is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Shaanxi Broadcast
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.26 times more return on investment than Shaanxi Broadcast. However, Fujian Longzhou is 1.26 times more volatile than Shaanxi Broadcast TV. It trades about 0.14 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about 0.07 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Shaanxi Broadcast |
Fujian Longzhou and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Shaanxi Broadcast
The main advantage of trading using opposite Fujian Longzhou and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Bank of China | Fujian Longzhou vs. China Construction Bank |
| Shaanxi Broadcast vs. Pengxin International Mining | Shaanxi Broadcast vs. Xinjiang Baodi Mining | Shaanxi Broadcast vs. Gansu Yasheng Industrial | Shaanxi Broadcast vs. Ye Chiu 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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