Correlation Between Fuzhou Rockchip and China Express
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and China Express Airlines, you can compare the effects of market volatilities on Fuzhou Rockchip and China Express 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 China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and China Express.
Diversification Opportunities for Fuzhou Rockchip and China Express
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fuzhou and China is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines 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 China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and China Express go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and China Express
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to under-perform the China Express. But the stock apears to be less risky and, when comparing its historical volatility, Fuzhou Rockchip Electronics is 1.03 times less risky than China Express. The stock trades about -0.11 of its potential returns per unit of risk. The China Express Airlines is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 791.00 in China Express Airlines on August 30, 2024 and sell it today you would earn a total of 57.00 from holding China Express Airlines or generate 7.21% 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. China Express Airlines
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| China Express Airlines |
Fuzhou Rockchip and China Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and China Express
The main advantage of trading using opposite Fuzhou Rockchip and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, China Express 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 China Express will offset losses from the drop in China Express' long position.| Fuzhou Rockchip vs. Shanghai Metersbonwe FashionAccessories | Fuzhou Rockchip vs. Cofoe Medical Technology | Fuzhou Rockchip vs. Hengkang Medical Group | Fuzhou Rockchip vs. Yindu Kitchen Equipment |
| China Express vs. Chengdu Kanghua Biological | China Express vs. Beijing Wantai Biological | China Express vs. Suzhou Novoprotein Scientific | China Express 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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