Correlation Between Fuzhou Rockchip and Shenzhen Glory
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Shenzhen Glory Medical, you can compare the effects of market volatilities on Fuzhou Rockchip and Shenzhen Glory 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 Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Shenzhen Glory.
Diversification Opportunities for Fuzhou Rockchip and Shenzhen Glory
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fuzhou and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Shenzhen Glory
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to under-perform the Shenzhen Glory. In addition to that, Fuzhou Rockchip is 1.04 times more volatile than Shenzhen Glory Medical. It trades about -0.12 of its total potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.13 per unit of volatility. If you would invest 317.00 in Shenzhen Glory Medical on August 31, 2024 and sell it today you would earn a total of 21.00 from holding Shenzhen Glory Medical or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuzhou Rockchip Electronics vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Shenzhen Glory Medical |
Fuzhou Rockchip and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Shenzhen Glory
The main advantage of trading using opposite Fuzhou Rockchip and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Shenzhen Glory 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 Glory will offset losses from the drop in Shenzhen Glory's long position.| Fuzhou Rockchip vs. Threes Company Media | Fuzhou Rockchip vs. FSPG Hi Tech Co | Fuzhou Rockchip vs. Inly Media Co | Fuzhou Rockchip vs. ChengDu Hi Tech Development |
| Shenzhen Glory vs. Cultural Investment Holdings | Shenzhen Glory vs. Gome Telecom Equipment | Shenzhen Glory vs. Bus Online Co | Shenzhen Glory vs. Holitech Technology Co |
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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