Correlation Between Fujian Oriental and Shenzhen Centralcon
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By analyzing existing cross correlation between Fujian Oriental Silver and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Fujian Oriental and Shenzhen Centralcon 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 Oriental with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Shenzhen Centralcon.
Diversification Opportunities for Fujian Oriental and Shenzhen Centralcon
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Fujian Oriental 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 Oriental Silver are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Fujian Oriental and Shenzhen Centralcon
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to generate 1.17 times more return on investment than Shenzhen Centralcon. However, Fujian Oriental is 1.17 times more volatile than Shenzhen Centralcon Investment. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.06 per unit of risk. If you would invest 563.00 in Fujian Oriental Silver on September 13, 2024 and sell it today you would earn a total of 224.00 from holding Fujian Oriental Silver or generate 39.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Fujian Oriental Silver |
| Shenzhen Centralcon |
Fujian Oriental and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Shenzhen Centralcon
The main advantage of trading using opposite Fujian Oriental and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Fujian Oriental vs. Eastern Communications Co | Fujian Oriental vs. Guangzhou Haige Communications | Fujian Oriental vs. Jiangsu Jinling Sports | Fujian Oriental vs. Sinomach Automobile Co |
| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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