Correlation Between China Marine and Fuyao Glass
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By analyzing existing cross correlation between China Marine Information and Fuyao Glass Industry, you can compare the effects of market volatilities on China Marine and Fuyao Glass 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 China Marine with a short position of Fuyao Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Marine and Fuyao Glass.
Diversification Opportunities for China Marine and Fuyao Glass
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Fuyao is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Marine Information and Fuyao Glass Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuyao Glass Industry and China Marine 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 China Marine Information are associated (or correlated) with Fuyao Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuyao Glass Industry has no effect on the direction of China Marine i.e., China Marine and Fuyao Glass go up and down completely randomly.
Pair Corralation between China Marine and Fuyao Glass
Assuming the 90 days trading horizon China Marine Information is expected to under-perform the Fuyao Glass. In addition to that, China Marine is 2.87 times more volatile than Fuyao Glass Industry. It trades about -0.31 of its total potential returns per unit of risk. Fuyao Glass Industry is currently generating about -0.19 per unit of volatility. If you would invest 5,834 in Fuyao Glass Industry on August 27, 2024 and sell it today you would lose (233.00) from holding Fuyao Glass Industry or give up 3.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Marine Information vs. Fuyao Glass Industry
Performance |
| Timeline |
| China Marine Information |
| Fuyao Glass Industry |
China Marine and Fuyao Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Marine and Fuyao Glass
The main advantage of trading using opposite China Marine and Fuyao Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Marine position performs unexpectedly, Fuyao Glass 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 Fuyao Glass will offset losses from the drop in Fuyao Glass' long position.| China Marine vs. Cambricon Technologies Corp | China Marine vs. Loongson Technology Corp | China Marine vs. Chongqing Road Bridge | China Marine vs. Shenzhen Fortune Trend |
| Fuyao Glass vs. Suzhou Douson Drilling | Fuyao Glass vs. China Marine Information | Fuyao Glass vs. Yonyou Auto Information | Fuyao Glass vs. Datang HuaYin 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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