Correlation Between Fujian Longzhou and Dongxing Sec
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Dongxing Sec Co, you can compare the effects of market volatilities on Fujian Longzhou and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Dongxing Sec.
Diversification Opportunities for Fujian Longzhou and Dongxing Sec
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fujian and Dongxing is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Dongxing Sec go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Dongxing Sec
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to under-perform the Dongxing Sec. In addition to that, Fujian Longzhou is 1.13 times more volatile than Dongxing Sec Co. It trades about -0.11 of its total potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.08 per unit of volatility. If you would invest 1,144 in Dongxing Sec Co on October 25, 2024 and sell it today you would lose (59.00) from holding Dongxing Sec Co or give up 5.16% 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. Dongxing Sec Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Dongxing Sec |
Fujian Longzhou and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Dongxing Sec
The main advantage of trading using opposite Fujian Longzhou and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Fujian Longzhou vs. China Minmetals Rare | Fujian Longzhou vs. Epoxy Base Electronic | Fujian Longzhou vs. Gem Year Industrial Co | Fujian Longzhou vs. Hainan Mining Co |
| Dongxing Sec vs. Tianjin Hi Tech Development | Dongxing Sec vs. Strait Innovation Internet | Dongxing Sec vs. Linktel Technologies Co | Dongxing Sec vs. Tongyu Communication |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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