Correlation Between Chenzhou Jingui and Fuyao Glass
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Fuyao Glass Industry, you can compare the effects of market volatilities on Chenzhou Jingui and Fuyao Glass 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 Chenzhou Jingui with a short position of Fuyao Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Fuyao Glass.
Diversification Opportunities for Chenzhou Jingui and Fuyao Glass
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chenzhou and Fuyao is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Fuyao Glass Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuyao Glass Industry and Chenzhou Jingui 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 Chenzhou Jingui Silver are associated (or correlated) with Fuyao Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuyao Glass Industry has no effect on the direction of Chenzhou Jingui i.e., Chenzhou Jingui and Fuyao Glass go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Fuyao Glass
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 1.43 times more return on investment than Fuyao Glass. However, Chenzhou Jingui is 1.43 times more volatile than Fuyao Glass Industry. It trades about -0.1 of its potential returns per unit of risk. Fuyao Glass Industry is currently generating about -0.25 per unit of risk. If you would invest 361.00 in Chenzhou Jingui Silver on November 29, 2024 and sell it today you would lose (9.00) from holding Chenzhou Jingui Silver or give up 2.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Fuyao Glass Industry
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Fuyao Glass Industry |
Chenzhou Jingui and Fuyao Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Fuyao Glass
The main advantage of trading using opposite Chenzhou Jingui and Fuyao Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui position performs unexpectedly, Fuyao Glass 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 Fuyao Glass will offset losses from the drop in Fuyao Glass' long position.| Chenzhou Jingui vs. Jiangsu Xinri E Vehicle | Chenzhou Jingui vs. Xuzhou Handler Special | Chenzhou Jingui vs. Yili Chuanning Biotechnology | Chenzhou Jingui vs. Dongfeng Automobile Co |
| Fuyao Glass vs. Heilongjiang Transport Development | Fuyao Glass vs. Shuhua Sports Co | Fuyao Glass vs. Central China Land | Fuyao Glass vs. Changjiang Publishing Media |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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