Correlation Between Fujian Boss and Cathay Biotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Boss Software and Cathay Biotech, you can compare the effects of market volatilities on Fujian Boss and Cathay Biotech 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 Cathay Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Boss and Cathay Biotech.
Diversification Opportunities for Fujian Boss and Cathay Biotech
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Cathay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Boss Software and Cathay Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Biotech 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 Cathay Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Biotech has no effect on the direction of Fujian Boss i.e., Fujian Boss and Cathay Biotech go up and down completely randomly.
Pair Corralation between Fujian Boss and Cathay Biotech
Assuming the 90 days trading horizon Fujian Boss Software is expected to under-perform the Cathay Biotech. In addition to that, Fujian Boss is 1.42 times more volatile than Cathay Biotech. It trades about -0.28 of its total potential returns per unit of risk. Cathay Biotech is currently generating about 0.0 per unit of volatility. If you would invest 4,126 in Cathay Biotech on October 24, 2024 and sell it today you would lose (18.00) from holding Cathay Biotech or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fujian Boss Software vs. Cathay Biotech
Performance |
| Timeline |
| Fujian Boss Software |
| Cathay Biotech |
Fujian Boss and Cathay Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Boss and Cathay Biotech
The main advantage of trading using opposite Fujian Boss and Cathay Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Boss position performs unexpectedly, Cathay Biotech 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 Cathay Biotech will offset losses from the drop in Cathay Biotech'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 |
| Cathay Biotech vs. Glodon Software Co | Cathay Biotech vs. GuoChuang Software Co | Cathay Biotech vs. Fujian Boss Software | Cathay Biotech vs. Suzhou Mingzhi Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |