Correlation Between Fujian Nanwang and Goke Microelectronics
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By analyzing existing cross correlation between Fujian Nanwang Environment and Goke Microelectronics Co, you can compare the effects of market volatilities on Fujian Nanwang and Goke Microelectronics 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 Goke Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Goke Microelectronics.
Diversification Opportunities for Fujian Nanwang and Goke Microelectronics
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Goke is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Goke Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goke Microelectronics 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 Goke Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goke Microelectronics has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Goke Microelectronics go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Goke Microelectronics
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to generate 0.94 times more return on investment than Goke Microelectronics. However, Fujian Nanwang Environment is 1.07 times less risky than Goke Microelectronics. It trades about -0.07 of its potential returns per unit of risk. Goke Microelectronics Co is currently generating about -0.1 per unit of risk. If you would invest 1,285 in Fujian Nanwang Environment on October 18, 2024 and sell it today you would lose (75.00) from holding Fujian Nanwang Environment or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Goke Microelectronics Co
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Goke Microelectronics |
Fujian Nanwang and Goke Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Goke Microelectronics
The main advantage of trading using opposite Fujian Nanwang and Goke Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Goke Microelectronics 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 Goke Microelectronics will offset losses from the drop in Goke Microelectronics' long position.| Fujian Nanwang vs. Kuangda Technology Group | Fujian Nanwang vs. Tianjin Ruixin Technology | Fujian Nanwang vs. Guangdong Xiongsu Technology | Fujian Nanwang vs. Keeson Technology Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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