Correlation Between Fuzhou Rockchip and Cinda Securities
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Cinda Securities Co, you can compare the effects of market volatilities on Fuzhou Rockchip and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Cinda Securities.
Diversification Opportunities for Fuzhou Rockchip and Cinda Securities
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fuzhou and Cinda is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Cinda Securities go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Cinda Securities
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to generate 2.46 times more return on investment than Cinda Securities. However, Fuzhou Rockchip is 2.46 times more volatile than Cinda Securities Co. It trades about 0.27 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.27 per unit of risk. If you would invest 9,393 in Fuzhou Rockchip Electronics on October 12, 2024 and sell it today you would earn a total of 3,475 from holding Fuzhou Rockchip Electronics or generate 37.0% 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. Cinda Securities Co
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Cinda Securities |
Fuzhou Rockchip and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Cinda Securities
The main advantage of trading using opposite Fuzhou Rockchip and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Fuzhou Rockchip vs. Quectel Wireless Solutions | Fuzhou Rockchip vs. Runjian Communication Co | Fuzhou Rockchip vs. Telling Telecommunication Holding | Fuzhou Rockchip vs. Beijing Bewinner Communications |
| Cinda Securities vs. Glodon Software Co | Cinda Securities vs. Jiangyin Jianghua Microelectronics | Cinda Securities vs. Fuzhou Rockchip Electronics | Cinda Securities vs. Weihai Honglin Electronic |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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