Correlation Between Fuzhou Rockchip and Xinjiang Baodi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Fuzhou Rockchip and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Xinjiang Baodi.
Diversification Opportunities for Fuzhou Rockchip and Xinjiang Baodi
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fuzhou and Xinjiang is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Xinjiang Baodi
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to generate 1.16 times more return on investment than Xinjiang Baodi. However, Fuzhou Rockchip is 1.16 times more volatile than Xinjiang Baodi Mining. It trades about 0.06 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.02 per unit of risk. If you would invest 8,789 in Fuzhou Rockchip Electronics on November 1, 2024 and sell it today you would earn a total of 7,661 from holding Fuzhou Rockchip Electronics or generate 87.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.83% |
| Values | Daily Returns |
Fuzhou Rockchip Electronics vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Xinjiang Baodi Mining |
Fuzhou Rockchip and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Xinjiang Baodi
The main advantage of trading using opposite Fuzhou Rockchip and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Fuzhou Rockchip vs. Nanjing Putian Telecommunications | Fuzhou Rockchip vs. Sihui Fuji Electronics | Fuzhou Rockchip vs. Techshine Electronics Co | Fuzhou Rockchip vs. Fiberhome Telecommunication Technologies |
| Xinjiang Baodi vs. Xiangyang Automobile Bearing | Xinjiang Baodi vs. Fuzhou Rockchip Electronics | Xinjiang Baodi vs. Haima Automobile Group | Xinjiang Baodi vs. Sihui Fuji Electronics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |