Correlation Between China National and FSPG Hi-Tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between China National Software and FSPG Hi Tech Co, you can compare the effects of market volatilities on China National and FSPG Hi-Tech 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 China National with a short position of FSPG Hi-Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and FSPG Hi-Tech.
Diversification Opportunities for China National and FSPG Hi-Tech
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and FSPG is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding China National Software and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech and China National 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 China National Software are associated (or correlated) with FSPG Hi-Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of China National i.e., China National and FSPG Hi-Tech go up and down completely randomly.
Pair Corralation between China National and FSPG Hi-Tech
Assuming the 90 days trading horizon China National Software is expected to generate 1.04 times more return on investment than FSPG Hi-Tech. However, China National is 1.04 times more volatile than FSPG Hi Tech Co. It trades about 0.1 of its potential returns per unit of risk. FSPG Hi Tech Co is currently generating about 0.01 per unit of risk. If you would invest 4,176 in China National Software on November 6, 2024 and sell it today you would earn a total of 147.00 from holding China National Software or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China National Software vs. FSPG Hi Tech Co
Performance |
| Timeline |
| China National Software |
| FSPG Hi Tech |
China National and FSPG Hi-Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China National and FSPG Hi-Tech
The main advantage of trading using opposite China National and FSPG Hi-Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National position performs unexpectedly, FSPG Hi-Tech 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 FSPG Hi-Tech will offset losses from the drop in FSPG Hi-Tech's long position.| China National vs. Ningbo Construction Co | China National vs. Marssenger Kitchenware Co | China National vs. Beijing Yanjing Brewery | China National vs. Jahen Household Products |
| FSPG Hi-Tech vs. Shenyang Chemical Industry | FSPG Hi-Tech vs. Liuzhou Chemical Industry | FSPG Hi-Tech vs. Hengli Petrochemical Co | FSPG Hi-Tech vs. Hangzhou Arcvideo 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |