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
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Epoxy and Fujian is 0.95. 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 is expected to generate 1.2 times less return on investment than Fujian Longzhou. But when comparing it to its historical volatility, Epoxy Base Electronic is 1.18 times less risky than Fujian Longzhou. It trades about 0.02 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 468.00 in Fujian Longzhou Transportation on August 26, 2024 and sell it today you would lose (13.00) from holding Fujian Longzhou Transportation or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| 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. Zijin Mining Group | Epoxy Base vs. Wanhua Chemical Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Shandong Gold Mining |
| Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Bank of China | Fujian Longzhou vs. China Construction Bank |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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