Correlation Between Weihai Honglin and Fujian Oriental
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By analyzing existing cross correlation between Weihai Honglin Electronic and Fujian Oriental Silver, you can compare the effects of market volatilities on Weihai Honglin and Fujian Oriental 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 Weihai Honglin with a short position of Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Fujian Oriental.
Diversification Opportunities for Weihai Honglin and Fujian Oriental
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Weihai and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver and Weihai Honglin 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 Weihai Honglin Electronic are associated (or correlated) with Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Fujian Oriental go up and down completely randomly.
Pair Corralation between Weihai Honglin and Fujian Oriental
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 0.76 times more return on investment than Fujian Oriental. However, Weihai Honglin Electronic is 1.31 times less risky than Fujian Oriental. It trades about 0.01 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.03 per unit of risk. If you would invest 1,437 in Weihai Honglin Electronic on September 2, 2024 and sell it today you would lose (68.00) from holding Weihai Honglin Electronic or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Fujian Oriental Silver
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Fujian Oriental Silver |
Weihai Honglin and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Fujian Oriental
The main advantage of trading using opposite Weihai Honglin and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Weihai Honglin vs. Cultural Investment Holdings | Weihai Honglin vs. Gome Telecom Equipment | Weihai Honglin vs. Bus Online Co | Weihai Honglin vs. Holitech Technology Co |
| Fujian Oriental vs. Weihai Honglin Electronic | Fujian Oriental vs. Hangzhou Prevail Optoelectronic | Fujian Oriental vs. Fuzhou Rockchip Electronics | Fujian Oriental vs. Bomin Electronics Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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