Correlation Between Shengtak New and Fujian Wanchen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shengtak New Material and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Shengtak New and Fujian Wanchen 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 Shengtak New with a short position of Fujian Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengtak New and Fujian Wanchen.
Diversification Opportunities for Shengtak New and Fujian Wanchen
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shengtak and Fujian is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shengtak New Material and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote and Shengtak New 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 Shengtak New Material are associated (or correlated) with Fujian Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Shengtak New i.e., Shengtak New and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Shengtak New and Fujian Wanchen
Assuming the 90 days trading horizon Shengtak New is expected to generate 13.97 times less return on investment than Fujian Wanchen. But when comparing it to its historical volatility, Shengtak New Material is 1.19 times less risky than Fujian Wanchen. It trades about 0.01 of its potential returns per unit of risk. Fujian Wanchen Biotechnology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,270 in Fujian Wanchen Biotechnology on October 16, 2024 and sell it today you would earn a total of 6,465 from holding Fujian Wanchen Biotechnology or generate 509.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengtak New Material vs. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Shengtak New Material |
| Fujian Wanchen Biote |
Shengtak New and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengtak New and Fujian Wanchen
The main advantage of trading using opposite Shengtak New and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengtak New position performs unexpectedly, Fujian Wanchen 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 Fujian Wanchen will offset losses from the drop in Fujian Wanchen's long position.| Shengtak New vs. Union Semiconductor Co | Shengtak New vs. Fiberhome Telecommunication Technologies | Shengtak New vs. Haima Automobile Group | Shengtak New vs. Shannon Semiconductor Technology |
| Fujian Wanchen vs. Fujian Longzhou Transportation | Fujian Wanchen vs. Shanghai Broadband Technology | Fujian Wanchen vs. Eastern Communications Co | Fujian Wanchen vs. Hainan Haiqi Transportation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |