Correlation Between Gem Year and Fujian Longzhou
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By analyzing existing cross correlation between Gem Year Industrial Co and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Gem Year and Fujian Longzhou 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 Gem Year with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Fujian Longzhou.
Diversification Opportunities for Gem Year and Fujian Longzhou
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Fujian is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Gem Year i.e., Gem Year and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Gem Year and Fujian Longzhou
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.64 times more return on investment than Fujian Longzhou. However, Gem Year Industrial Co is 1.57 times less risky than Fujian Longzhou. It trades about 0.32 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.05 per unit of risk. If you would invest 409.00 in Gem Year Industrial Co on November 4, 2024 and sell it today you would earn a total of 40.00 from holding Gem Year Industrial Co or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Gem Year Industrial |
| Fujian Longzhou Tran |
Gem Year and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Fujian Longzhou
The main advantage of trading using opposite Gem Year and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Gem Year vs. Ningxia Younglight Chemicals | Gem Year vs. Shenzhen Noposion Agrochemicals | Gem Year vs. Heilongjiang Transport Development | Gem Year vs. China Sports Industry |
| Fujian Longzhou vs. Shengda Mining Co | Fujian Longzhou vs. Anhui Tongguan Copper | Fujian Longzhou vs. Shanghai CEO Environmental | Fujian Longzhou vs. China Asset Management |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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