Correlation Between Fujian Oriental and Shanghai CEO
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By analyzing existing cross correlation between Fujian Oriental Silver and Shanghai CEO Environmental, you can compare the effects of market volatilities on Fujian Oriental and Shanghai CEO 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 Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Shanghai CEO.
Diversification Opportunities for Fujian Oriental and Shanghai CEO
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Shanghai CEO go up and down completely randomly.
Pair Corralation between Fujian Oriental and Shanghai CEO
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Shanghai CEO. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Oriental Silver is 12.92 times less risky than Shanghai CEO. The stock trades about -0.02 of its potential returns per unit of risk. The Shanghai CEO Environmental is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,124 in Shanghai CEO Environmental on September 4, 2024 and sell it today you would lose (1,090) from holding Shanghai CEO Environmental or give up 51.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Shanghai CEO Environmental
Performance |
| Timeline |
| Fujian Oriental Silver |
| Shanghai CEO Environ |
Fujian Oriental and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Shanghai CEO
The main advantage of trading using opposite Fujian Oriental and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO'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 |
| Shanghai CEO vs. Industrial and Commercial | Shanghai CEO vs. Agricultural Bank of | Shanghai CEO vs. China Construction Bank | Shanghai CEO vs. Bank of China |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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