Correlation Between Fujian Longzhou and Zhongtong Guomai
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Fujian Longzhou and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Zhongtong Guomai.
Diversification Opportunities for Fujian Longzhou and Zhongtong Guomai
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Zhongtong is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Zhongtong Guomai
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.08 times more return on investment than Zhongtong Guomai. However, Fujian Longzhou is 1.08 times more volatile than Zhongtong Guomai Communication. It trades about 0.01 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.03 per unit of risk. If you would invest 484.00 in Fujian Longzhou Transportation on November 21, 2024 and sell it today you would lose (45.00) from holding Fujian Longzhou Transportation or give up 9.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Zhongtong Guomai Com |
Fujian Longzhou and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Zhongtong Guomai
The main advantage of trading using opposite Fujian Longzhou and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Fujian Longzhou vs. Ningbo Ligong Online | Fujian Longzhou vs. Jiangxi Sunshine Dairy | Fujian Longzhou vs. Shijiazhuang Tonhe Electronics | Fujian Longzhou vs. Beijing Sanyuan Foods |
| Zhongtong Guomai vs. Jiangsu Jinling Sports | Zhongtong Guomai vs. TianJin 712 Communication | Zhongtong Guomai vs. Allwin Telecommunication Co | Zhongtong Guomai vs. Fiberhome Telecommunication Technologies |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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