Correlation Between Fuda Alloy and Jiangsu Jinling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fuda Alloy Materials and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Fuda Alloy and Jiangsu Jinling 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 Fuda Alloy with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Jiangsu Jinling.
Diversification Opportunities for Fuda Alloy and Jiangsu Jinling
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fuda and Jiangsu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Fuda Alloy 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 Fuda Alloy Materials are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Fuda Alloy i.e., Fuda Alloy and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Fuda Alloy and Jiangsu Jinling
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 0.91 times more return on investment than Jiangsu Jinling. However, Fuda Alloy Materials is 1.1 times less risky than Jiangsu Jinling. It trades about 0.1 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.06 per unit of risk. If you would invest 999.00 in Fuda Alloy Materials on September 3, 2024 and sell it today you would earn a total of 332.00 from holding Fuda Alloy Materials or generate 33.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuda Alloy Materials vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Fuda Alloy Materials |
| Jiangsu Jinling Sports |
Fuda Alloy and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuda Alloy and Jiangsu Jinling
The main advantage of trading using opposite Fuda Alloy and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Fuda Alloy vs. Cultural Investment Holdings | Fuda Alloy vs. Gome Telecom Equipment | Fuda Alloy vs. Bus Online Co | Fuda Alloy vs. Holitech Technology Co |
| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. Industrial and Commercial | Jiangsu Jinling vs. China Life Insurance |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |