Correlation Between Fujian Boss and Shandong
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By analyzing existing cross correlation between Fujian Boss Software and Shandong Hi Speed RoadBridge, you can compare the effects of market volatilities on Fujian Boss and Shandong 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 Fujian Boss with a short position of Shandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Boss and Shandong.
Diversification Opportunities for Fujian Boss and Shandong
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Shandong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Boss Software and Shandong Hi Speed RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hi Speed and Fujian Boss 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 Fujian Boss Software are associated (or correlated) with Shandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hi Speed has no effect on the direction of Fujian Boss i.e., Fujian Boss and Shandong go up and down completely randomly.
Pair Corralation between Fujian Boss and Shandong
Assuming the 90 days trading horizon Fujian Boss Software is expected to under-perform the Shandong. In addition to that, Fujian Boss is 1.94 times more volatile than Shandong Hi Speed RoadBridge. It trades about -0.28 of its total potential returns per unit of risk. Shandong Hi Speed RoadBridge is currently generating about -0.25 per unit of volatility. If you would invest 596.00 in Shandong Hi Speed RoadBridge on October 24, 2024 and sell it today you would lose (38.00) from holding Shandong Hi Speed RoadBridge or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Boss Software vs. Shandong Hi Speed RoadBridge
Performance |
| Timeline |
| Fujian Boss Software |
| Shandong Hi Speed |
Fujian Boss and Shandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Boss and Shandong
The main advantage of trading using opposite Fujian Boss and Shandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Boss position performs unexpectedly, Shandong 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 Shandong will offset losses from the drop in Shandong's long position.| Fujian Boss vs. Jiangsu Yanghe Brewery | Fujian Boss vs. Jinhe Biotechnology Co | Fujian Boss vs. Industrial Bank Co | Fujian Boss vs. Shandong Sanyuan Biotechnology |
| Shandong vs. Bingo Software Co | Shandong vs. Fujian Boss Software | Shandong vs. China Building Material | Shandong vs. Ningbo Tip Rubber |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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