Correlation Between Fujian Longzhou and Anhui Transport
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Anhui Transport Consulting, you can compare the effects of market volatilities on Fujian Longzhou and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Anhui Transport.
Diversification Opportunities for Fujian Longzhou and Anhui Transport
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Anhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Anhui Transport go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Anhui Transport
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.87 times more return on investment than Anhui Transport. However, Fujian Longzhou is 1.87 times more volatile than Anhui Transport Consulting. It trades about 0.21 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.1 per unit of risk. If you would invest 443.00 in Fujian Longzhou Transportation on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Fujian Longzhou Transportation or generate 20.09% 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. Anhui Transport Consulting
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Anhui Transport Cons |
Fujian Longzhou and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Anhui Transport
The main advantage of trading using opposite Fujian Longzhou and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport'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 |
| Anhui Transport vs. Biwin Storage Technology | Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. China Construction Bank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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