Correlation Between Shandong Publishing and Fujian Boss
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By analyzing existing cross correlation between Shandong Publishing Media and Fujian Boss Software, you can compare the effects of market volatilities on Shandong Publishing and Fujian Boss 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 Shandong Publishing with a short position of Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Fujian Boss.
Diversification Opportunities for Shandong Publishing and Fujian Boss
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shandong and Fujian is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Fujian Boss go up and down completely randomly.
Pair Corralation between Shandong Publishing and Fujian Boss
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 1.0 times more return on investment than Fujian Boss. However, Shandong Publishing Media is 1.0 times less risky than Fujian Boss. It trades about -0.14 of its potential returns per unit of risk. Fujian Boss Software is currently generating about -0.32 per unit of risk. If you would invest 1,140 in Shandong Publishing Media on October 25, 2024 and sell it today you would lose (79.00) from holding Shandong Publishing Media or give up 6.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Fujian Boss Software
Performance |
| Timeline |
| Shandong Publishing Media |
| Fujian Boss Software |
Shandong Publishing and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Fujian Boss
The main advantage of trading using opposite Shandong Publishing and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Fujian Boss 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 Boss will offset losses from the drop in Fujian Boss' long position.| Shandong Publishing vs. Industrial and Commercial | Shandong Publishing vs. Agricultural Bank of | Shandong Publishing vs. China Construction Bank | Shandong Publishing vs. Bank of China |
| Fujian Boss vs. Kweichow Moutai Co | Fujian Boss vs. NAURA Technology Group | Fujian Boss vs. APT Medical | Fujian Boss vs. BYD Co Ltd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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