Correlation Between Fujian Wanchen and Guangdong Sanhe
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Guangdong Sanhe Pile, you can compare the effects of market volatilities on Fujian Wanchen and Guangdong Sanhe 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 Guangdong Sanhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Guangdong Sanhe.
Diversification Opportunities for Fujian Wanchen and Guangdong Sanhe
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fujian and Guangdong is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Guangdong Sanhe Pile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Sanhe Pile 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 Guangdong Sanhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Sanhe Pile has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Guangdong Sanhe go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Guangdong Sanhe
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 0.91 times more return on investment than Guangdong Sanhe. However, Fujian Wanchen Biotechnology is 1.1 times less risky than Guangdong Sanhe. It trades about 0.41 of its potential returns per unit of risk. Guangdong Sanhe Pile is currently generating about -0.24 per unit of risk. If you would invest 7,921 in Fujian Wanchen Biotechnology on November 3, 2024 and sell it today you would earn a total of 2,359 from holding Fujian Wanchen Biotechnology or generate 29.78% 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. Guangdong Sanhe Pile
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Guangdong Sanhe Pile |
Fujian Wanchen and Guangdong Sanhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Guangdong Sanhe
The main advantage of trading using opposite Fujian Wanchen and Guangdong Sanhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Guangdong Sanhe 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 Guangdong Sanhe will offset losses from the drop in Guangdong Sanhe's long position.| Fujian Wanchen vs. Bus Online Co | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Gome Telecom Equipment | Fujian Wanchen vs. Cultural Investment Holdings |
| Guangdong Sanhe vs. Zijin Mining Group | Guangdong Sanhe vs. Wanhua Chemical Group | Guangdong Sanhe vs. Baoshan Iron Steel | Guangdong Sanhe vs. Shandong Gold Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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