Correlation Between Cinda Securities and Fujian Newland
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By analyzing existing cross correlation between Cinda Securities Co and Fujian Newland Computer, you can compare the effects of market volatilities on Cinda Securities and Fujian Newland 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 Cinda Securities with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Fujian Newland.
Diversification Opportunities for Cinda Securities and Fujian Newland
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cinda and Fujian is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Cinda Securities i.e., Cinda Securities and Fujian Newland go up and down completely randomly.
Pair Corralation between Cinda Securities and Fujian Newland
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 1.07 times more return on investment than Fujian Newland. However, Cinda Securities is 1.07 times more volatile than Fujian Newland Computer. It trades about -0.27 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about -0.36 per unit of risk. If you would invest 1,596 in Cinda Securities Co on October 12, 2024 and sell it today you would lose (220.00) from holding Cinda Securities Co or give up 13.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Fujian Newland Computer
Performance |
| Timeline |
| Cinda Securities |
| Fujian Newland Computer |
Cinda Securities and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Fujian Newland
The main advantage of trading using opposite Cinda Securities and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Fujian Newland 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 Newland will offset losses from the drop in Fujian Newland's long position.| Cinda Securities vs. Aba Chemicals Corp | Cinda Securities vs. Shenzhen Noposion Agrochemicals | Cinda Securities vs. Allmed Medical Products | Cinda Securities vs. Zhongzhu Medical Holdings |
| Fujian Newland vs. China Life Insurance | Fujian Newland vs. Cinda Securities Co | Fujian Newland vs. Piotech Inc A | Fujian Newland vs. Dongxing Sec Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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