Correlation Between Shanghai Shuixing and Fujian Boss
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By analyzing existing cross correlation between Shanghai Shuixing Home and Fujian Boss Software, you can compare the effects of market volatilities on Shanghai Shuixing and Fujian Boss 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 Shanghai Shuixing with a short position of Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Fujian Boss.
Diversification Opportunities for Shanghai Shuixing and Fujian Boss
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Fujian is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Fujian Boss go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Fujian Boss
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 0.82 times more return on investment than Fujian Boss. However, Shanghai Shuixing Home is 1.22 times less risky than Fujian Boss. It trades about 0.03 of its potential returns per unit of risk. Fujian Boss Software is currently generating about -0.01 per unit of risk. If you would invest 1,329 in Shanghai Shuixing Home on October 12, 2024 and sell it today you would earn a total of 243.00 from holding Shanghai Shuixing Home or generate 18.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Fujian Boss Software
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Fujian Boss Software |
Shanghai Shuixing and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Fujian Boss
The main advantage of trading using opposite Shanghai Shuixing and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Fujian Boss 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 Boss will offset losses from the drop in Fujian Boss' long position.| Shanghai Shuixing vs. Jiangsu Hoperun Software | Shanghai Shuixing vs. Dhc Software Co | Shanghai Shuixing vs. Anhui Huilong Agricultural | Shanghai Shuixing vs. Thunder Software Technology |
| Fujian Boss vs. Mengtian Home Group | Fujian Boss vs. Songz Automobile Air | Fujian Boss vs. Shandong Homey Aquatic | Fujian Boss vs. Shanghai Shuixing 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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