Correlation Between Fujian Longzhou and Smartgiant Technology
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Smartgiant Technology Co, you can compare the effects of market volatilities on Fujian Longzhou and Smartgiant Technology 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 Smartgiant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Smartgiant Technology.
Diversification Opportunities for Fujian Longzhou and Smartgiant Technology
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Smartgiant is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Smartgiant Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartgiant Technology 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 Smartgiant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartgiant Technology has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Smartgiant Technology go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Smartgiant Technology
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to under-perform the Smartgiant Technology. In addition to that, Fujian Longzhou is 1.03 times more volatile than Smartgiant Technology Co. It trades about -0.11 of its total potential returns per unit of risk. Smartgiant Technology Co is currently generating about -0.08 per unit of volatility. If you would invest 4,160 in Smartgiant Technology Co on October 25, 2024 and sell it today you would lose (240.00) from holding Smartgiant Technology Co or give up 5.77% 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. Smartgiant Technology Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Smartgiant Technology |
Fujian Longzhou and Smartgiant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Smartgiant Technology
The main advantage of trading using opposite Fujian Longzhou and Smartgiant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Smartgiant Technology 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 Smartgiant Technology will offset losses from the drop in Smartgiant Technology's long position.| Fujian Longzhou vs. China Minmetals Rare | Fujian Longzhou vs. Epoxy Base Electronic | Fujian Longzhou vs. Gem Year Industrial Co | Fujian Longzhou vs. Hainan Mining Co |
| Smartgiant Technology vs. Kweichow Moutai Co | Smartgiant Technology vs. Contemporary Amperex Technology | Smartgiant Technology vs. Beijing Roborock Technology | Smartgiant Technology vs. BYD Co Ltd |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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