Correlation Between Fujian Wanchen and Jinsanjiang Silicon
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Fujian Wanchen and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Jinsanjiang Silicon.
Diversification Opportunities for Fujian Wanchen and Jinsanjiang Silicon
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Jinsanjiang is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Jinsanjiang Silicon
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 0.8 times more return on investment than Jinsanjiang Silicon. However, Fujian Wanchen Biotechnology is 1.25 times less risky than Jinsanjiang Silicon. It trades about 0.41 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about -0.18 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Jinsanjiang Silicon |
Fujian Wanchen and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Jinsanjiang Silicon
The main advantage of trading using opposite Fujian Wanchen and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon'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 |
| Jinsanjiang Silicon vs. MayAir Technology Co | Jinsanjiang Silicon vs. Shandong Longquan Pipeline | Jinsanjiang Silicon vs. Jiangsu Phoenix Publishing | Jinsanjiang Silicon vs. Hubei Xingfa Chemicals |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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