Correlation Between Fuzhou Rockchip and Kunshan Guoli
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Fuzhou Rockchip and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Kunshan Guoli.
Diversification Opportunities for Fuzhou Rockchip and Kunshan Guoli
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fuzhou and Kunshan is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Kunshan Guoli
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to under-perform the Kunshan Guoli. In addition to that, Fuzhou Rockchip is 1.55 times more volatile than Kunshan Guoli Electronic. It trades about -0.05 of its total potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.08 per unit of volatility. If you would invest 5,059 in Kunshan Guoli Electronic on January 26, 2025 and sell it today you would lose (249.00) from holding Kunshan Guoli Electronic or give up 4.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuzhou Rockchip Electronics vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Kunshan Guoli Electronic |
Fuzhou Rockchip and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Kunshan Guoli
The main advantage of trading using opposite Fuzhou Rockchip and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Fuzhou Rockchip vs. Yunnan Shennong Agricultural | Fuzhou Rockchip vs. Shanghai Construction Group | Fuzhou Rockchip vs. Kingclean Electric Co | Fuzhou Rockchip vs. Masterwork Machinery |
| Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Bank of China | Kunshan Guoli vs. Agricultural Bank of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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