Correlation Between Fujian Wanchen and XinJiang GuoTong
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Fujian Wanchen and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and XinJiang GuoTong.
Diversification Opportunities for Fujian Wanchen and XinJiang GuoTong
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and XinJiang is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Fujian Wanchen and XinJiang GuoTong
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 1.38 times more return on investment than XinJiang GuoTong. However, Fujian Wanchen is 1.38 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.12 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about -0.01 per unit of risk. If you would invest 1,282 in Fujian Wanchen Biotechnology on October 29, 2024 and sell it today you would earn a total of 8,998 from holding Fujian Wanchen Biotechnology or generate 701.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Fujian Wanchen Biote |
| XinJiang GuoTong Pipeline |
Fujian Wanchen and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and XinJiang GuoTong
The main advantage of trading using opposite Fujian Wanchen and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Fujian Wanchen vs. JCHX Mining Management | Fujian Wanchen vs. Sanbo Hospital Management | Fujian Wanchen vs. Longmaster Information Tech | Fujian Wanchen vs. Hygon Information Technology |
| XinJiang GuoTong vs. CSSC Offshore Marine | XinJiang GuoTong vs. Anhui Fuhuang Steel | XinJiang GuoTong vs. Zoy Home Furnishing | XinJiang GuoTong vs. Markor International Home |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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