Correlation Between Shandong Ruifeng and Shenzhen Fastprint
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and Shenzhen Fastprint Circuit, you can compare the effects of market volatilities on Shandong Ruifeng and Shenzhen Fastprint 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 Shandong Ruifeng with a short position of Shenzhen Fastprint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and Shenzhen Fastprint.
Diversification Opportunities for Shandong Ruifeng and Shenzhen Fastprint
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical and Shenzhen Fastprint Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fastprint and Shandong Ruifeng 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 Shandong Ruifeng Chemical are associated (or correlated) with Shenzhen Fastprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fastprint has no effect on the direction of Shandong Ruifeng i.e., Shandong Ruifeng and Shenzhen Fastprint go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and Shenzhen Fastprint
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to generate 1.15 times more return on investment than Shenzhen Fastprint. However, Shandong Ruifeng is 1.15 times more volatile than Shenzhen Fastprint Circuit. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Fastprint Circuit is currently generating about 0.0 per unit of risk. If you would invest 823.00 in Shandong Ruifeng Chemical on August 29, 2024 and sell it today you would earn a total of 316.00 from holding Shandong Ruifeng Chemical or generate 38.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. Shenzhen Fastprint Circuit
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| Shenzhen Fastprint |
Shandong Ruifeng and Shenzhen Fastprint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and Shenzhen Fastprint
The main advantage of trading using opposite Shandong Ruifeng and Shenzhen Fastprint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng position performs unexpectedly, Shenzhen Fastprint 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 Shenzhen Fastprint will offset losses from the drop in Shenzhen Fastprint's long position.| Shandong Ruifeng vs. Bloomage Biotechnology Corp | Shandong Ruifeng vs. Unigroup Guoxin Microelectronics | Shandong Ruifeng vs. Epoxy Base Electronic | Shandong Ruifeng vs. Techshine Electronics Co |
| Shenzhen Fastprint vs. Henan Shuanghui Investment | Shenzhen Fastprint vs. Cultural Investment Holdings | Shenzhen Fastprint vs. Kunwu Jiuding Investment | Shenzhen Fastprint vs. Zhongrun Resources Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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