Correlation Between China Express and Fuzhou Rockchip
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By analyzing existing cross correlation between China Express Airlines and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on China Express and Fuzhou Rockchip 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 China Express with a short position of Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and Fuzhou Rockchip.
Diversification Opportunities for China Express and Fuzhou Rockchip
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Fuzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec and China Express 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 China Express Airlines are associated (or correlated) with Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of China Express i.e., China Express and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between China Express and Fuzhou Rockchip
Assuming the 90 days trading horizon China Express Airlines is expected to generate 1.03 times more return on investment than Fuzhou Rockchip. However, China Express is 1.03 times more volatile than Fuzhou Rockchip Electronics. It trades about 0.13 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about -0.11 per unit of risk. If you would invest 791.00 in China Express Airlines on August 30, 2024 and sell it today you would earn a total of 57.00 from holding China Express Airlines or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| China Express Airlines |
| Fuzhou Rockchip Elec |
China Express and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and Fuzhou Rockchip
The main advantage of trading using opposite China Express and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| China Express vs. Chengdu Kanghua Biological | China Express vs. Beijing Wantai Biological | China Express vs. Suzhou Novoprotein Scientific | China Express vs. Aluminum Corp of |
| Fuzhou Rockchip vs. Shanghai Metersbonwe FashionAccessories | Fuzhou Rockchip vs. Cofoe Medical Technology | Fuzhou Rockchip vs. Hengkang Medical Group | Fuzhou Rockchip vs. Yindu Kitchen Equipment |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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