Correlation Between Xiamen East and Fuzhou Rockchip
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By analyzing existing cross correlation between Xiamen East Asia and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Xiamen East and Fuzhou Rockchip 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 Xiamen East with a short position of Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen East and Fuzhou Rockchip.
Diversification Opportunities for Xiamen East and Fuzhou Rockchip
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Fuzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen East Asia and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec and Xiamen East 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 Xiamen East Asia are associated (or correlated) with Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Xiamen East i.e., Xiamen East and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Xiamen East and Fuzhou Rockchip
Assuming the 90 days trading horizon Xiamen East Asia is expected to generate 0.97 times more return on investment than Fuzhou Rockchip. However, Xiamen East Asia is 1.03 times less risky than Fuzhou Rockchip. It trades about -0.12 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about -0.16 per unit of risk. If you would invest 1,147 in Xiamen East Asia on August 28, 2024 and sell it today you would lose (74.00) from holding Xiamen East Asia or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen East Asia vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Xiamen East Asia |
| Fuzhou Rockchip Elec |
Xiamen East and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen East and Fuzhou Rockchip
The main advantage of trading using opposite Xiamen East and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen East position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Xiamen East vs. Yili Chuanning Biotechnology | Xiamen East vs. Shandong Polymer Biochemicals | Xiamen East vs. Henan Shuanghui Investment | Xiamen East vs. Maccura Biotechnology Co |
| Fuzhou Rockchip vs. Lutian Machinery Co | Fuzhou Rockchip vs. China Longyuan Power | Fuzhou Rockchip vs. Changshu Tongrun Auto | Fuzhou Rockchip vs. PetroChina Co Ltd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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