Correlation Between Fujian Oriental and Hualan Group
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By analyzing existing cross correlation between Fujian Oriental Silver and Hualan Group Co, you can compare the effects of market volatilities on Fujian Oriental and Hualan Group 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 Hualan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Hualan Group.
Diversification Opportunities for Fujian Oriental and Hualan Group
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Hualan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Hualan Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hualan Group 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 Hualan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hualan Group has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Hualan Group go up and down completely randomly.
Pair Corralation between Fujian Oriental and Hualan Group
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Hualan Group. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Oriental Silver is 1.15 times less risky than Hualan Group. The stock trades about -0.02 of its potential returns per unit of risk. The Hualan Group Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,440 in Hualan Group Co on September 4, 2024 and sell it today you would earn a total of 41.00 from holding Hualan Group Co or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Hualan Group Co
Performance |
| Timeline |
| Fujian Oriental Silver |
| Hualan Group |
Fujian Oriental and Hualan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Hualan Group
The main advantage of trading using opposite Fujian Oriental and Hualan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Hualan Group 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 Hualan Group will offset losses from the drop in Hualan Group's long position.| Fujian Oriental vs. Datang HuaYin Electric | Fujian Oriental vs. Dongguan Tarry Electronics | Fujian Oriental vs. Leaguer Shenzhen MicroElectronics | Fujian Oriental vs. Digital China Information |
| Hualan Group vs. Hainan Mining Co | Hualan Group vs. Uroica Mining Safety | Hualan Group vs. Fujian Oriental Silver | Hualan Group vs. Guangdong Silvere Sci |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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