Correlation Between Fuzhou Rockchip and ZheJiang Haers
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and ZheJiang Haers Vacuum, you can compare the effects of market volatilities on Fuzhou Rockchip and ZheJiang Haers 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 ZheJiang Haers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and ZheJiang Haers.
Diversification Opportunities for Fuzhou Rockchip and ZheJiang Haers
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fuzhou and ZheJiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and ZheJiang Haers Vacuum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZheJiang Haers Vacuum 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 ZheJiang Haers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZheJiang Haers Vacuum has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and ZheJiang Haers go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and ZheJiang Haers
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to generate 1.22 times more return on investment than ZheJiang Haers. However, Fuzhou Rockchip is 1.22 times more volatile than ZheJiang Haers Vacuum. It trades about 0.29 of its potential returns per unit of risk. ZheJiang Haers Vacuum is currently generating about 0.12 per unit of risk. If you would invest 5,013 in Fuzhou Rockchip Electronics on September 12, 2024 and sell it today you would earn a total of 4,380 from holding Fuzhou Rockchip Electronics or generate 87.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Fuzhou Rockchip Electronics vs. ZheJiang Haers Vacuum
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| ZheJiang Haers Vacuum |
Fuzhou Rockchip and ZheJiang Haers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and ZheJiang Haers
The main advantage of trading using opposite Fuzhou Rockchip and ZheJiang Haers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, ZheJiang Haers 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 ZheJiang Haers will offset losses from the drop in ZheJiang Haers' 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 |
| ZheJiang Haers vs. Lutian Machinery Co | ZheJiang Haers vs. PetroChina Co Ltd | ZheJiang Haers vs. Bank of China | ZheJiang Haers vs. Gansu Jiu Steel |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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