Correlation Between Epoxy Base and Fujian Longzhou
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By analyzing existing cross correlation between Epoxy Base Electronic and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Fujian Longzhou.
Diversification Opportunities for Epoxy Base and Fujian Longzhou
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Epoxy and Fujian is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic 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 Epoxy Base 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 Epoxy Base Electronic 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 Epoxy Base i.e., Epoxy Base and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Epoxy Base and Fujian Longzhou
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to generate 1.34 times more return on investment than Fujian Longzhou. However, Epoxy Base is 1.34 times more volatile than Fujian Longzhou Transportation. It trades about 0.15 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.05 per unit of risk. If you would invest 497.00 in Epoxy Base Electronic on November 4, 2024 and sell it today you would earn a total of 43.00 from holding Epoxy Base Electronic or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Epoxy Base Electronic |
| Fujian Longzhou Tran |
Epoxy Base and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Fujian Longzhou
The main advantage of trading using opposite Epoxy Base and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Beijing YanDong MicroElectronic | Epoxy Base vs. Fuzhou Rockchip Electronics | Epoxy Base vs. Ningbo Tech Bank Co | Epoxy Base vs. Weihai Honglin Electronic |
| Fujian Longzhou vs. Shengda Mining Co | Fujian Longzhou vs. Anhui Tongguan Copper | Fujian Longzhou vs. Shanghai CEO Environmental | Fujian Longzhou vs. China Asset Management |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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