Correlation Between Industrial and Fujian Longzhou
Specify exactly 2 symbols:
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
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Fujian is -0.35. 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 generate 0.42 times more return on investment than Fujian Longzhou. However, Industrial and Commercial is 2.36 times less risky than Fujian Longzhou. It trades about 0.11 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.07 per unit of risk. If you would invest 666.00 in Industrial and Commercial on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Industrial and Commercial or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| 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. Soyea Technology Co | Industrial vs. Montage Technology Co | Industrial vs. Tianjin Ruixin Technology | Industrial vs. Jiangsu Jinling Sports |
| Fujian Longzhou vs. Beijing Baolande Software | Fujian Longzhou vs. Fiberhome Telecommunication Technologies | Fujian Longzhou vs. Jiangsu Hoperun Software | Fujian Longzhou vs. Zhangjiagang Elegant Home |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |