Correlation Between Chenzhou Jingui and Fujian Oriental
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Fujian Oriental Silver, you can compare the effects of market volatilities on Chenzhou Jingui and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Fujian Oriental.
Diversification Opportunities for Chenzhou Jingui and Fujian Oriental
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chenzhou and Fujian is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Chenzhou Jingui i.e., Chenzhou Jingui and Fujian Oriental go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Fujian Oriental
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 1.39 times more return on investment than Fujian Oriental. However, Chenzhou Jingui is 1.39 times more volatile than Fujian Oriental Silver. It trades about 0.07 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.05 per unit of risk. If you would invest 360.00 in Chenzhou Jingui Silver on September 4, 2024 and sell it today you would earn a total of 17.00 from holding Chenzhou Jingui Silver or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Fujian Oriental Silver
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Fujian Oriental Silver |
Chenzhou Jingui and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Fujian Oriental
The main advantage of trading using opposite Chenzhou Jingui and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Chenzhou Jingui vs. Zijin Mining Group | Chenzhou Jingui vs. Wanhua Chemical Group | Chenzhou Jingui vs. Baoshan Iron Steel | Chenzhou Jingui vs. Shandong Gold Mining |
| Fujian Oriental vs. Datang HuaYin Electric | Fujian Oriental vs. Dongguan Tarry Electronics | Fujian Oriental vs. Leaguer Shenzhen MicroElectronics | Fujian Oriental vs. Digital China Information |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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