Correlation Between Fujian Oriental and Konfoong Materials
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By analyzing existing cross correlation between Fujian Oriental Silver and Konfoong Materials International, you can compare the effects of market volatilities on Fujian Oriental and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Konfoong Materials.
Diversification Opportunities for Fujian Oriental and Konfoong Materials
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Konfoong is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Konfoong Materials go up and down completely randomly.
Pair Corralation between Fujian Oriental and Konfoong Materials
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Konfoong Materials. In addition to that, Fujian Oriental is 1.69 times more volatile than Konfoong Materials International. It trades about -0.15 of its total potential returns per unit of risk. Konfoong Materials International is currently generating about -0.04 per unit of volatility. If you would invest 7,300 in Konfoong Materials International on October 28, 2024 and sell it today you would lose (201.00) from holding Konfoong Materials International or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Konfoong Materials Internation
Performance |
| Timeline |
| Fujian Oriental Silver |
| Konfoong Materials |
Fujian Oriental and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Konfoong Materials
The main advantage of trading using opposite Fujian Oriental and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.| Fujian Oriental vs. Anhui Transport Consulting | Fujian Oriental vs. Shandong Hi Speed RoadBridge | Fujian Oriental vs. Zhongshan Broad Ocean Motor | Fujian Oriental vs. Zhengping RoadBridge Constr |
| Konfoong Materials vs. Cloud Live Technology | Konfoong Materials vs. Nanjing Putian Telecommunications | Konfoong Materials vs. Shenzhen Coship Electronics | Konfoong Materials vs. Shenzhen Hifuture Electric |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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