Correlation Between Fushun Special and Central Plains
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By analyzing existing cross correlation between Fushun Special Steel and Central Plains Environment, you can compare the effects of market volatilities on Fushun Special and Central Plains 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 Fushun Special with a short position of Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fushun Special and Central Plains.
Diversification Opportunities for Fushun Special and Central Plains
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fushun and Central is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fushun Special Steel and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir and Fushun Special 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 Fushun Special Steel are associated (or correlated) with Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of Fushun Special i.e., Fushun Special and Central Plains go up and down completely randomly.
Pair Corralation between Fushun Special and Central Plains
Assuming the 90 days trading horizon Fushun Special Steel is expected to under-perform the Central Plains. In addition to that, Fushun Special is 1.12 times more volatile than Central Plains Environment. It trades about -0.27 of its total potential returns per unit of risk. Central Plains Environment is currently generating about 0.0 per unit of volatility. If you would invest 880.00 in Central Plains Environment on August 29, 2024 and sell it today you would lose (5.00) from holding Central Plains Environment or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fushun Special Steel vs. Central Plains Environment
Performance |
| Timeline |
| Fushun Special Steel |
| Central Plains Envir |
Fushun Special and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fushun Special and Central Plains
The main advantage of trading using opposite Fushun Special and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fushun Special position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| Fushun Special vs. Gan Yuan Foods | Fushun Special vs. Yili Chuanning Biotechnology | Fushun Special vs. Namchow Food Group | Fushun Special vs. Wuhan Hvsen Biotechnology |
| Central Plains vs. China Petroleum Chemical | Central Plains vs. PetroChina Co Ltd | Central Plains vs. China State Construction | Central Plains vs. China Railway Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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