Correlation Between Fujian Wanchen and Cloud Live
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Cloud Live Technology, you can compare the effects of market volatilities on Fujian Wanchen and Cloud Live 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 Cloud Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Cloud Live.
Diversification Opportunities for Fujian Wanchen and Cloud Live
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Cloud is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Cloud Live Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Live Technology 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 Cloud Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Live Technology has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Cloud Live go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Cloud Live
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 0.82 times more return on investment than Cloud Live. However, Fujian Wanchen Biotechnology is 1.22 times less risky than Cloud Live. It trades about 0.3 of its potential returns per unit of risk. Cloud Live Technology is currently generating about -0.22 per unit of risk. If you would invest 6,492 in Fujian Wanchen Biotechnology on October 26, 2024 and sell it today you would earn a total of 4,057 from holding Fujian Wanchen Biotechnology or generate 62.49% 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. Cloud Live Technology
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Cloud Live Technology |
Fujian Wanchen and Cloud Live Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Cloud Live
The main advantage of trading using opposite Fujian Wanchen and Cloud Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Cloud Live 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 Cloud Live will offset losses from the drop in Cloud Live's long position.| Fujian Wanchen vs. Fujian Oriental Silver | Fujian Wanchen vs. Chenzhou Jingui Silver | Fujian Wanchen vs. Henan Shuanghui Investment | Fujian Wanchen vs. Jiangsu Yueda Investment |
| Cloud Live vs. Kontour Medical Technology | Cloud Live vs. Fujian Wanchen Biotechnology | Cloud Live vs. Xiangyu Medical Co | Cloud Live vs. Zhongzhu Medical 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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