Correlation Between Fujian Longzhou and New China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Longzhou Transportation and New China Life, you can compare the effects of market volatilities on Fujian Longzhou and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and New China.
Diversification Opportunities for Fujian Longzhou and New China
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and New is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and New China go up and down completely randomly.
Pair Corralation between Fujian Longzhou and New China
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.57 times more return on investment than New China. However, Fujian Longzhou is 1.57 times more volatile than New China Life. It trades about 0.2 of its potential returns per unit of risk. New China Life is currently generating about 0.01 per unit of risk. If you would invest 497.00 in Fujian Longzhou Transportation on September 14, 2024 and sell it today you would earn a total of 90.00 from holding Fujian Longzhou Transportation or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. New China Life
Performance |
| Timeline |
| Fujian Longzhou Tran |
| New China Life |
Fujian Longzhou and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and New China
The main advantage of trading using opposite Fujian Longzhou and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Fujian Longzhou vs. New China Life | Fujian Longzhou vs. Ming Yang Smart | Fujian Longzhou vs. 159681 | Fujian Longzhou vs. 159005 |
| New China vs. Fujian Nanwang Environment | New China vs. Guangdong Silvere Sci | New China vs. Huaibei Mining Holdings | New China vs. Guocheng Mining Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Positions Ratings 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 |