Correlation Between Fujian Wanchen and Zhejiang Kingland
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Fujian Wanchen and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Zhejiang Kingland.
Diversification Opportunities for Fujian Wanchen and Zhejiang Kingland
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Zhejiang is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Zhejiang Kingland
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 2.09 times more return on investment than Zhejiang Kingland. However, Fujian Wanchen is 2.09 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.11 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.0 per unit of risk. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Zhejiang Kingland |
Fujian Wanchen and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Zhejiang Kingland
The main advantage of trading using opposite Fujian Wanchen and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Fujian Wanchen vs. Haima Automobile Group | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Wuhan Yangtze Communication | Fujian Wanchen vs. Sunwave Communications Co |
| Zhejiang Kingland vs. Ziel Home Furnishing | Zhejiang Kingland vs. Shandong Homey Aquatic | Zhejiang Kingland vs. Markor International Home | Zhejiang Kingland vs. Hunan Mendale Hometextile |
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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