Correlation Between Fujian Wanchen and Fujian Longzhou
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Fujian Wanchen and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Fujian Longzhou.
Diversification Opportunities for Fujian Wanchen and Fujian Longzhou
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Fujian is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Fujian Longzhou
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 1.21 times more return on investment than Fujian Longzhou. However, Fujian Wanchen is 1.21 times more volatile than Fujian Longzhou Transportation. It trades about 0.37 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.06 per unit of risk. If you would invest 8,023 in Fujian Wanchen Biotechnology on November 1, 2024 and sell it today you would earn a total of 2,257 from holding Fujian Wanchen Biotechnology or generate 28.13% 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. Fujian Longzhou Transportation
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Fujian Longzhou Tran |
Fujian Wanchen and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Fujian Longzhou
The main advantage of trading using opposite Fujian Wanchen and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Fujian Longzhou 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 Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Fujian Wanchen vs. Zoy Home Furnishing | Fujian Wanchen vs. Eyebright Medical Technology | Fujian Wanchen vs. HanS Laser Tech | Fujian Wanchen vs. DO Home Collection |
| Fujian Longzhou vs. Fujian Wanchen Biotechnology | Fujian Longzhou vs. Sichuan Hebang Biotechnology | Fujian Longzhou vs. Chengdu B ray Media | Fujian Longzhou vs. Guangdong Jinma Entertainment |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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