Correlation Between Fujian Boss and Jiangsu Yanghe
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By analyzing existing cross correlation between Fujian Boss Software and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Fujian Boss and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Boss and Jiangsu Yanghe.
Diversification Opportunities for Fujian Boss and Jiangsu Yanghe
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Jiangsu is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Boss Software and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Fujian Boss i.e., Fujian Boss and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Fujian Boss and Jiangsu Yanghe
Assuming the 90 days trading horizon Fujian Boss Software is expected to under-perform the Jiangsu Yanghe. In addition to that, Fujian Boss is 1.71 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.54 of its total potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.25 per unit of volatility. If you would invest 8,564 in Jiangsu Yanghe Brewery on October 11, 2024 and sell it today you would lose (554.00) from holding Jiangsu Yanghe Brewery or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Boss Software vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Fujian Boss Software |
| Jiangsu Yanghe Brewery |
Fujian Boss and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Boss and Jiangsu Yanghe
The main advantage of trading using opposite Fujian Boss and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Boss position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Fujian Boss vs. Anhui Tongguan Copper | Fujian Boss vs. Shanghai CEO Environmental | Fujian Boss vs. Sanbo Hospital Management | Fujian Boss vs. Harvest Fund Management |
| Jiangsu Yanghe vs. Jiangyin Haida Rubber | Jiangsu Yanghe vs. Southchip Semiconductor Technology | Jiangsu Yanghe vs. StarPower Semiconductor | Jiangsu Yanghe vs. Shanghai Phichem Material |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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