Correlation Between Fujian Wanchen and Shaanxi Meineng
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Fujian Wanchen and Shaanxi Meineng 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 Wanchen with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Shaanxi Meineng.
Diversification Opportunities for Fujian Wanchen and Shaanxi Meineng
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fujian and Shaanxi is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Fujian Wanchen 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 Wanchen Biotechnology are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Shaanxi Meineng
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 1.27 times more return on investment than Shaanxi Meineng. However, Fujian Wanchen is 1.27 times more volatile than Shaanxi Meineng Clean. It trades about 0.3 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.1 per unit of risk. If you would invest 7,296 in Fujian Wanchen Biotechnology on October 18, 2024 and sell it today you would earn a total of 1,424 from holding Fujian Wanchen Biotechnology or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Shaanxi Meineng Clean |
Fujian Wanchen and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Shaanxi Meineng
The main advantage of trading using opposite Fujian Wanchen and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Fujian Wanchen vs. Jiajia Food Group | Fujian Wanchen vs. Shanghai Ziyan Foods | Fujian Wanchen vs. HaiXin Foods Co | Fujian Wanchen vs. Suzhou Weizhixiang Food |
| Shaanxi Meineng vs. Henan Shuanghui Investment | Shaanxi Meineng vs. Fujian Wanchen Biotechnology | Shaanxi Meineng vs. Tieling Newcity Investment | Shaanxi Meineng vs. Cultural Investment Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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