Correlation Between Fujian Longzhou and Epoxy Base
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Epoxy Base Electronic, you can compare the effects of market volatilities on Fujian Longzhou and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Epoxy Base.
Diversification Opportunities for Fujian Longzhou and Epoxy Base
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Epoxy is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Epoxy Base go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Epoxy Base
Assuming the 90 days trading horizon Fujian Longzhou is expected to generate 1.13 times less return on investment than Epoxy Base. In addition to that, Fujian Longzhou is 1.17 times more volatile than Epoxy Base Electronic. It trades about 0.02 of its total potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.02 per unit of volatility. If you would invest 510.00 in Epoxy Base Electronic on August 29, 2024 and sell it today you would earn a total of 45.00 from holding Epoxy Base Electronic or generate 8.82% 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. Epoxy Base Electronic
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Epoxy Base Electronic |
Fujian Longzhou and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Epoxy Base
The main advantage of trading using opposite Fujian Longzhou and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base'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 |
| Epoxy Base vs. Tieling Newcity Investment | Epoxy Base vs. Zhongrun Resources Investment | Epoxy Base vs. Tibet Huayu Mining | Epoxy Base vs. Zoje Resources Investment |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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