Correlation Between Fuzhou Rockchip and Guangdong Marubi
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Fuzhou Rockchip and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Guangdong Marubi.
Diversification Opportunities for Fuzhou Rockchip and Guangdong Marubi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fuzhou and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Guangdong Marubi
Assuming the 90 days trading horizon Fuzhou Rockchip is expected to generate 1.77 times less return on investment than Guangdong Marubi. In addition to that, Fuzhou Rockchip is 1.0 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.04 of its total potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.07 per unit of volatility. If you would invest 3,117 in Guangdong Marubi Biotechnology on September 13, 2024 and sell it today you would earn a total of 115.00 from holding Guangdong Marubi Biotechnology or generate 3.69% 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. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Guangdong Marubi Bio |
Fuzhou Rockchip and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Guangdong Marubi
The main advantage of trading using opposite Fuzhou Rockchip and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Fuzhou Rockchip vs. Nanjing Putian Telecommunications | Fuzhou Rockchip vs. Tianjin Realty Development | Fuzhou Rockchip vs. Kangyue Technology Co | Fuzhou Rockchip vs. Shenzhen Hifuture Electric |
| Guangdong Marubi vs. Tongling Nonferrous Metals | Guangdong Marubi vs. Sino Platinum Metals Co | Guangdong Marubi vs. CITIC Metal Co | Guangdong Marubi vs. Zhongshan Public Utilities |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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