Correlation Between Qingdao Port and Fujian Newland
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By analyzing existing cross correlation between Qingdao Port International and Fujian Newland Computer, you can compare the effects of market volatilities on Qingdao Port 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 Qingdao Port with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Port and Fujian Newland.
Diversification Opportunities for Qingdao Port and Fujian Newland
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qingdao and Fujian is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Port International 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 Qingdao Port 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 Qingdao Port International 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 Qingdao Port i.e., Qingdao Port and Fujian Newland go up and down completely randomly.
Pair Corralation between Qingdao Port and Fujian Newland
Assuming the 90 days trading horizon Qingdao Port is expected to generate 2.21 times less return on investment than Fujian Newland. But when comparing it to its historical volatility, Qingdao Port International is 3.17 times less risky than Fujian Newland. It trades about 0.17 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,788 in Fujian Newland Computer on August 28, 2024 and sell it today you would earn a total of 150.00 from holding Fujian Newland Computer or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Port International vs. Fujian Newland Computer
Performance |
| Timeline |
| Qingdao Port Interna |
| Fujian Newland Computer |
Qingdao Port and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Port and Fujian Newland
The main advantage of trading using opposite Qingdao Port and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Port 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.| Qingdao Port vs. Sinosteel Engineering and | Qingdao Port vs. Tongyu Communication | Qingdao Port vs. Sunwave Communications Co | Qingdao Port vs. Aofu Environmental Technology |
| Fujian Newland vs. Agricultural Bank of | Fujian Newland vs. Industrial and Commercial | Fujian Newland vs. Bank of China | Fujian Newland vs. PetroChina 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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