Correlation Between Fuzhou Rockchip and Kuang Chi
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Kuang Chi Technologies, you can compare the effects of market volatilities on Fuzhou Rockchip and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Kuang Chi.
Diversification Opportunities for Fuzhou Rockchip and Kuang Chi
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fuzhou and Kuang is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Kuang Chi go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Kuang Chi
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to generate 1.65 times more return on investment than Kuang Chi. However, Fuzhou Rockchip is 1.65 times more volatile than Kuang Chi Technologies. It trades about 0.33 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about -0.03 per unit of risk. If you would invest 8,810 in Fuzhou Rockchip Electronics on October 15, 2024 and sell it today you would earn a total of 3,890 from holding Fuzhou Rockchip Electronics or generate 44.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuzhou Rockchip Electronics vs. Kuang Chi Technologies
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Kuang Chi Technologies |
Fuzhou Rockchip and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Kuang Chi
The main advantage of trading using opposite Fuzhou Rockchip and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Fuzhou Rockchip vs. Cloud Live Technology | Fuzhou Rockchip vs. Nanjing Putian Telecommunications | Fuzhou Rockchip vs. Tianjin Realty Development | Fuzhou Rockchip vs. Shenzhen Coship Electronics |
| Kuang Chi vs. Konfoong Materials International | Kuang Chi vs. Suzhou Douson Drilling | Kuang Chi vs. Shanghai Phichem Material | Kuang Chi vs. GRIPM Advanced Materials |
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 CEOs Directory module to screen CEOs from public companies around the world.
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