Correlation Between Shanghai Broadband and Fujian Longzhou
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By analyzing existing cross correlation between Shanghai Broadband Technology and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Shanghai Broadband and Fujian Longzhou 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 Shanghai Broadband with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Fujian Longzhou.
Diversification Opportunities for Shanghai Broadband and Fujian Longzhou
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Fujian is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran and Shanghai Broadband 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 Shanghai Broadband Technology are associated (or correlated) with Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Fujian Longzhou
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the Fujian Longzhou. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Broadband Technology is 1.53 times less risky than Fujian Longzhou. The stock trades about -0.01 of its potential returns per unit of risk. The Fujian Longzhou Transportation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 479.00 in Fujian Longzhou Transportation on September 28, 2024 and sell it today you would lose (32.00) from holding Fujian Longzhou Transportation or give up 6.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Shanghai Broadband |
| Fujian Longzhou Tran |
Shanghai Broadband and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Fujian Longzhou
The main advantage of trading using opposite Shanghai Broadband and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Fujian Longzhou 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 Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
| Fujian Longzhou vs. Chengdu Kanghua Biological | Fujian Longzhou vs. Beijing Wantai Biological | Fujian Longzhou vs. Suzhou Novoprotein Scientific | Fujian Longzhou 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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