Correlation Between Fujian Longzhou and RoadMain T
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By analyzing existing cross correlation between Fujian Longzhou Transportation and RoadMain T Co, you can compare the effects of market volatilities on Fujian Longzhou and RoadMain T 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 RoadMain T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and RoadMain T.
Diversification Opportunities for Fujian Longzhou and RoadMain T
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and RoadMain is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and RoadMain T Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoadMain T 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 RoadMain T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoadMain T has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and RoadMain T go up and down completely randomly.
Pair Corralation between Fujian Longzhou and RoadMain T
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to under-perform the RoadMain T. In addition to that, Fujian Longzhou is 1.53 times more volatile than RoadMain T Co. It trades about -0.04 of its total potential returns per unit of risk. RoadMain T Co is currently generating about -0.04 per unit of volatility. If you would invest 3,107 in RoadMain T Co on September 28, 2024 and sell it today you would lose (104.00) from holding RoadMain T Co or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. RoadMain T Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| RoadMain T |
Fujian Longzhou and RoadMain T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and RoadMain T
The main advantage of trading using opposite Fujian Longzhou and RoadMain T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, RoadMain T 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 RoadMain T will offset losses from the drop in RoadMain T's long position.| Fujian Longzhou vs. Chengdu Kanghua Biological | Fujian Longzhou vs. Beijing Wantai Biological | Fujian Longzhou vs. Suzhou Novoprotein Scientific | Fujian Longzhou vs. Aluminum Corp of |
| RoadMain T vs. Ming Yang Smart | RoadMain T vs. 159681 | RoadMain T vs. 159005 | RoadMain T vs. Loctek Ergonomic Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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