Correlation Between Fujian Oriental and Chengdu Xinzhu
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By analyzing existing cross correlation between Fujian Oriental Silver and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Fujian Oriental and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Chengdu Xinzhu.
Diversification Opportunities for Fujian Oriental and Chengdu Xinzhu
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and Chengdu is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Fujian Oriental and Chengdu Xinzhu
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Chengdu Xinzhu. In addition to that, Fujian Oriental is 1.01 times more volatile than Chengdu Xinzhu RoadBridge. It trades about -0.22 of its total potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about 0.04 per unit of volatility. If you would invest 522.00 in Chengdu Xinzhu RoadBridge on October 30, 2024 and sell it today you would earn a total of 8.00 from holding Chengdu Xinzhu RoadBridge or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Fujian Oriental Silver |
| Chengdu Xinzhu RoadBridge |
Fujian Oriental and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Chengdu Xinzhu
The main advantage of trading using opposite Fujian Oriental and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Fujian Oriental vs. Xinjiang Baodi Mining | Fujian Oriental vs. Changchun UP Optotech | Fujian Oriental vs. Holitech Technology Co | Fujian Oriental vs. Guocheng Mining Co |
| Chengdu Xinzhu vs. Beijing Seeyon Internet | Chengdu Xinzhu vs. Sichuan Jinshi Technology | Chengdu Xinzhu vs. Dazhong Transportation Group | Chengdu Xinzhu vs. Shenzhen Urban Transport |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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