Correlation Between Shantou Wanshun and Fujian Oriental
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By analyzing existing cross correlation between Shantou Wanshun Package and Fujian Oriental Silver, you can compare the effects of market volatilities on Shantou Wanshun 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 Shantou Wanshun with a short position of Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Fujian Oriental.
Diversification Opportunities for Shantou Wanshun and Fujian Oriental
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shantou and Fujian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package 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 Shantou Wanshun 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 Shantou Wanshun Package 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 Shantou Wanshun i.e., Shantou Wanshun and Fujian Oriental go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Fujian Oriental
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 0.98 times more return on investment than Fujian Oriental. However, Shantou Wanshun Package is 1.02 times less risky than Fujian Oriental. It trades about 0.04 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.02 per unit of risk. If you would invest 489.00 in Shantou Wanshun Package on September 3, 2024 and sell it today you would earn a total of 70.00 from holding Shantou Wanshun Package or generate 14.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Fujian Oriental Silver
Performance |
| Timeline |
| Shantou Wanshun Package |
| Fujian Oriental Silver |
Shantou Wanshun and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Fujian Oriental
The main advantage of trading using opposite Shantou Wanshun and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun 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.| Shantou Wanshun vs. Zijin Mining Group | Shantou Wanshun vs. Baoshan Iron Steel | Shantou Wanshun vs. Rongsheng Petrochemical Co | Shantou Wanshun vs. Hoshine Silicon Ind |
| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. China Construction Bank | Fujian Oriental vs. Bank of China | Fujian Oriental vs. Agricultural Bank of |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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