Correlation Between Fuzhou Rockchip and Epoxy Base
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Epoxy Base Electronic, you can compare the effects of market volatilities on Fuzhou Rockchip and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Epoxy Base.
Diversification Opportunities for Fuzhou Rockchip and Epoxy Base
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fuzhou and Epoxy is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Epoxy Base go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Epoxy Base
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to generate 0.93 times more return on investment than Epoxy Base. However, Fuzhou Rockchip Electronics is 1.08 times less risky than Epoxy Base. It trades about 0.12 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.08 per unit of risk. If you would invest 5,686 in Fuzhou Rockchip Electronics on September 2, 2024 and sell it today you would earn a total of 2,743 from holding Fuzhou Rockchip Electronics or generate 48.24% 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. Epoxy Base Electronic
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Epoxy Base Electronic |
Fuzhou Rockchip and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Epoxy Base
The main advantage of trading using opposite Fuzhou Rockchip and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Fuzhou Rockchip vs. Industrial and Commercial | Fuzhou Rockchip vs. Kweichow Moutai Co | Fuzhou Rockchip vs. Agricultural Bank of | Fuzhou Rockchip vs. China Mobile Limited |
| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Wanhua Chemical Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Shandong Gold Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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