Correlation Between Fujian Boss and Tianjin Silvery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Boss Software and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Fujian Boss and Tianjin Silvery 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 Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Boss and Tianjin Silvery.
Diversification Opportunities for Fujian Boss and Tianjin Silvery
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fujian and Tianjin is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Boss Software and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon 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 Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Fujian Boss i.e., Fujian Boss and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Fujian Boss and Tianjin Silvery
Assuming the 90 days trading horizon Fujian Boss Software is expected to generate 0.55 times more return on investment than Tianjin Silvery. However, Fujian Boss Software is 1.81 times less risky than Tianjin Silvery. It trades about 0.12 of its potential returns per unit of risk. Tianjin Silvery Dragon is currently generating about -0.04 per unit of risk. If you would invest 1,423 in Fujian Boss Software on November 8, 2024 and sell it today you would earn a total of 55.00 from holding Fujian Boss Software or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Fujian Boss Software vs. Tianjin Silvery Dragon
Performance |
| Timeline |
| Fujian Boss Software |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tianjin Silvery Dragon |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Fujian Boss and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Boss and Tianjin Silvery
The main advantage of trading using opposite Fujian Boss and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Boss position performs unexpectedly, Tianjin Silvery 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 Tianjin Silvery will offset losses from the drop in Tianjin Silvery's long position.The idea behind Fujian Boss Software and Tianjin Silvery Dragon pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Transaction History View history of all your transactions and understand their impact on performance |