Correlation Between Fuzhou Rockchip and Anhui Gujing
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Anhui Gujing Distillery, you can compare the effects of market volatilities on Fuzhou Rockchip and Anhui Gujing 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 Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Anhui Gujing.
Diversification Opportunities for Fuzhou Rockchip and Anhui Gujing
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fuzhou and Anhui is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Anhui Gujing Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Gujing Distillery 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 Anhui Gujing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Gujing Distillery has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Anhui Gujing go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Anhui Gujing
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to generate 6.04 times more return on investment than Anhui Gujing. However, Fuzhou Rockchip is 6.04 times more volatile than Anhui Gujing Distillery. It trades about 0.28 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about 0.01 per unit of risk. If you would invest 10,870 in Fuzhou Rockchip Electronics on October 25, 2024 and sell it today you would earn a total of 4,246 from holding Fuzhou Rockchip Electronics or generate 39.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuzhou Rockchip Electronics vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Anhui Gujing Distillery |
Fuzhou Rockchip and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Anhui Gujing
The main advantage of trading using opposite Fuzhou Rockchip and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Anhui Gujing 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 Anhui Gujing will offset losses from the drop in Anhui Gujing's long position.| Fuzhou Rockchip vs. Kweichow Moutai Co | Fuzhou Rockchip vs. NAURA Technology Group | Fuzhou Rockchip vs. APT Medical | Fuzhou Rockchip vs. BYD Co Ltd |
| Anhui Gujing vs. Fuzhou Rockchip Electronics | Anhui Gujing vs. Guangdong Jingyi Metal | Anhui Gujing vs. Integrated Electronic Systems | Anhui Gujing vs. Zhejiang Yongjin Metal |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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