Correlation Between Fujian Nanwang and Shenzhen Aisidi
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By analyzing existing cross correlation between Fujian Nanwang Environment and Shenzhen Aisidi Co, you can compare the effects of market volatilities on Fujian Nanwang and Shenzhen Aisidi 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 Nanwang with a short position of Shenzhen Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Shenzhen Aisidi.
Diversification Opportunities for Fujian Nanwang and Shenzhen Aisidi
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi and Fujian Nanwang 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 Nanwang Environment are associated (or correlated) with Shenzhen Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Shenzhen Aisidi
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to generate 0.29 times more return on investment than Shenzhen Aisidi. However, Fujian Nanwang Environment is 3.41 times less risky than Shenzhen Aisidi. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Aisidi Co is currently generating about -0.04 per unit of risk. If you would invest 1,285 in Fujian Nanwang Environment on October 7, 2024 and sell it today you would earn a total of 23.00 from holding Fujian Nanwang Environment or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Shenzhen Aisidi Co
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Shenzhen Aisidi |
Fujian Nanwang and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Shenzhen Aisidi
The main advantage of trading using opposite Fujian Nanwang and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Shenzhen Aisidi 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 Shenzhen Aisidi will offset losses from the drop in Shenzhen Aisidi's long position.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Hoshine Silicon Ind |
| Shenzhen Aisidi vs. Emdoor Information Co | Shenzhen Aisidi vs. CITIC Guoan Information | Shenzhen Aisidi vs. Dezhan HealthCare Co | Shenzhen Aisidi vs. Sharetronic Data Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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