Correlation Between Fujian Longzhou and Semiconductor Manufacturing
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Fujian Longzhou and Semiconductor Manufacturing 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 Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Semiconductor Manufacturing.
Diversification Opportunities for Fujian Longzhou and Semiconductor Manufacturing
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Semiconductor is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing 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 Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Semiconductor Manufacturing
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.92 times more return on investment than Semiconductor Manufacturing. However, Fujian Longzhou is 1.92 times more volatile than Semiconductor Manufacturing Electronics. It trades about -0.06 of its potential returns per unit of risk. Semiconductor Manufacturing Electronics is currently generating about -0.13 per unit of risk. If you would invest 467.00 in Fujian Longzhou Transportation on October 26, 2024 and sell it today you would lose (57.00) from holding Fujian Longzhou Transportation or give up 12.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Semiconductor Manufacturing El
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Semiconductor Manufacturing |
Fujian Longzhou and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Semiconductor Manufacturing
The main advantage of trading using opposite Fujian Longzhou and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. China Construction Bank | Fujian Longzhou vs. Bank of China |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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