Correlation Between Fuzhou Rockchip and Shandong Rike
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Shandong Rike Chemical, you can compare the effects of market volatilities on Fuzhou Rockchip and Shandong Rike 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 Shandong Rike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Shandong Rike.
Diversification Opportunities for Fuzhou Rockchip and Shandong Rike
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fuzhou and Shandong is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Shandong Rike Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Rike Chemical 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 Shandong Rike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Rike Chemical has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Shandong Rike go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Shandong Rike
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to generate 1.48 times more return on investment than Shandong Rike. However, Fuzhou Rockchip is 1.48 times more volatile than Shandong Rike Chemical. It trades about 0.29 of its potential returns per unit of risk. Shandong Rike Chemical is currently generating about -0.04 per unit of risk. If you would invest 11,595 in Fuzhou Rockchip Electronics on October 29, 2024 and sell it today you would earn a total of 4,131 from holding Fuzhou Rockchip Electronics or generate 35.63% 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. Shandong Rike Chemical
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Shandong Rike Chemical |
Fuzhou Rockchip and Shandong Rike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Shandong Rike
The main advantage of trading using opposite Fuzhou Rockchip and Shandong Rike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Shandong Rike 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 Shandong Rike will offset losses from the drop in Shandong Rike's long position.| Fuzhou Rockchip vs. Guocheng Mining Co | Fuzhou Rockchip vs. Harvest Fund Management | Fuzhou Rockchip vs. JCHX Mining Management | Fuzhou Rockchip vs. AVIC Fund Management |
| Shandong Rike vs. Longjian Road Bridge | Shandong Rike vs. Kangping Technology Co | Shandong Rike vs. Anhui Transport Consulting | Shandong Rike 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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