Correlation Between Fujian Nanwang and Changchun BCHT
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By analyzing existing cross correlation between Fujian Nanwang Environment and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Fujian Nanwang and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Changchun BCHT.
Diversification Opportunities for Fujian Nanwang and Changchun BCHT
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Changchun is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Changchun BCHT go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Changchun BCHT
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to generate 0.7 times more return on investment than Changchun BCHT. However, Fujian Nanwang Environment is 1.43 times less risky than Changchun BCHT. It trades about 0.17 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about 0.04 per unit of risk. If you would invest 1,172 in Fujian Nanwang Environment on September 3, 2024 and sell it today you would earn a total of 70.00 from holding Fujian Nanwang Environment or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Changchun BCHT Biote |
Fujian Nanwang and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Changchun BCHT
The main advantage of trading using opposite Fujian Nanwang and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Hoshine Silicon Ind |
| Changchun BCHT vs. Chengdu Kanghua Biological | Changchun BCHT vs. Beijing Wantai Biological | Changchun BCHT vs. Suzhou Novoprotein Scientific | Changchun BCHT vs. Aluminum Corp of |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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