Correlation Between Industrial and Fujian Longzhou
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By analyzing existing cross correlation between Industrial and Commercial and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Fujian Longzhou.
Diversification Opportunities for Industrial and Fujian Longzhou
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Fujian is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Industrial and Fujian Longzhou
Assuming the 90 days trading horizon Industrial and Commercial is expected to under-perform the Fujian Longzhou. But the stock apears to be less risky and, when comparing its historical volatility, Industrial and Commercial is 2.01 times less risky than Fujian Longzhou. The stock trades about 0.0 of its potential returns per unit of risk. The Fujian Longzhou Transportation is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 341.00 in Fujian Longzhou Transportation on August 29, 2024 and sell it today you would earn a total of 149.00 from holding Fujian Longzhou Transportation or generate 43.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Industrial and Commercial |
| Fujian Longzhou Tran |
Industrial and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Fujian Longzhou
The main advantage of trading using opposite Industrial and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software Co |
| Fujian Longzhou vs. PetroChina Co Ltd | Fujian Longzhou vs. China State Construction | Fujian Longzhou vs. China Mobile Limited | Fujian Longzhou vs. Industrial and Commercial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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