Correlation Between Fuzhou Rockchip and Shenzhen Clou
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Fuzhou Rockchip and Shenzhen Clou 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 Fuzhou Rockchip with a short position of Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Shenzhen Clou.
Diversification Opportunities for Fuzhou Rockchip and Shenzhen Clou
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fuzhou and Shenzhen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics and Fuzhou Rockchip 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 Fuzhou Rockchip Electronics are associated (or correlated) with Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Shenzhen Clou
Assuming the 90 days trading horizon Fuzhou Rockchip is expected to generate 4.9 times less return on investment than Shenzhen Clou. But when comparing it to its historical volatility, Fuzhou Rockchip Electronics is 1.2 times less risky than Shenzhen Clou. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 446.00 in Shenzhen Clou Electronics on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Shenzhen Clou Electronics or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuzhou Rockchip Electronics vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Shenzhen Clou Electronics |
Fuzhou Rockchip and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Shenzhen Clou
The main advantage of trading using opposite Fuzhou Rockchip and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Fuzhou Rockchip vs. Nanjing Putian Telecommunications | Fuzhou Rockchip vs. Tianjin Realty Development | Fuzhou Rockchip vs. Kangyue Technology Co | Fuzhou Rockchip vs. Shenzhen Hifuture Electric |
| Shenzhen Clou vs. Industrial and Commercial | Shenzhen Clou vs. Agricultural Bank of | Shenzhen Clou vs. China Construction Bank | Shenzhen Clou vs. Bank of China |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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