Correlation Between RoadMain T and Fujian Longzhou
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By analyzing existing cross correlation between RoadMain T Co and Fujian Longzhou Transportation, you can compare the effects of market volatilities on RoadMain T 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 RoadMain T with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and Fujian Longzhou.
Diversification Opportunities for RoadMain T and Fujian Longzhou
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RoadMain and Fujian is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T Co 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 RoadMain T 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 RoadMain T Co 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 RoadMain T i.e., RoadMain T and Fujian Longzhou go up and down completely randomly.
Pair Corralation between RoadMain T and Fujian Longzhou
Assuming the 90 days trading horizon RoadMain T Co is expected to generate 0.65 times more return on investment than Fujian Longzhou. However, RoadMain T Co is 1.53 times less risky than Fujian Longzhou. It trades about -0.04 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.04 per unit of risk. If you would invest 3,107 in RoadMain T Co on September 28, 2024 and sell it today you would lose (104.00) from holding RoadMain T Co or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RoadMain T Co vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| RoadMain T |
| Fujian Longzhou Tran |
RoadMain T and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and Fujian Longzhou
The main advantage of trading using opposite RoadMain T and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T 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.| RoadMain T vs. Ming Yang Smart | RoadMain T vs. 159681 | RoadMain T vs. 159005 | RoadMain T vs. Loctek Ergonomic Technology |
| Fujian Longzhou vs. Chengdu Kanghua Biological | Fujian Longzhou vs. Beijing Wantai Biological | Fujian Longzhou vs. Suzhou Novoprotein Scientific | Fujian Longzhou vs. Aluminum Corp of |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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