Correlation Between Fujian Longzhou and Ningbo Fujia
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Fujian Longzhou and Ningbo Fujia 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 Ningbo Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Ningbo Fujia.
Diversification Opportunities for Fujian Longzhou and Ningbo Fujia
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fujian and Ningbo is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia Industrial 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 Ningbo Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Ningbo Fujia
Assuming the 90 days trading horizon Fujian Longzhou is expected to generate 1.92 times less return on investment than Ningbo Fujia. In addition to that, Fujian Longzhou is 1.17 times more volatile than Ningbo Fujia Industrial. It trades about 0.01 of its total potential returns per unit of risk. Ningbo Fujia Industrial is currently generating about 0.03 per unit of volatility. If you would invest 1,170 in Ningbo Fujia Industrial on October 12, 2024 and sell it today you would earn a total of 278.00 from holding Ningbo Fujia Industrial or generate 23.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Ningbo Fujia Industrial
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Ningbo Fujia Industrial |
Fujian Longzhou and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Ningbo Fujia
The main advantage of trading using opposite Fujian Longzhou and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Ningbo Fujia 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 Ningbo Fujia will offset losses from the drop in Ningbo Fujia's long position.| Fujian Longzhou vs. Ingenic Semiconductor | Fujian Longzhou vs. Suzhou Oriental Semiconductor | Fujian Longzhou vs. Will Semiconductor Co | Fujian Longzhou vs. Guangdong Transtek Medical |
| Ningbo Fujia vs. Shanghai Yaoji Playing | Ningbo Fujia vs. Huaxia Fund Management | Ningbo Fujia vs. JCHX Mining Management | Ningbo Fujia vs. CSSC Offshore Marine |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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