Correlation Between Xinya Electronic and Fuzhou Rockchip
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinya Electronic Co and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Xinya Electronic and Fuzhou Rockchip 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 Xinya Electronic with a short position of Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Fuzhou Rockchip.
Diversification Opportunities for Xinya Electronic and Fuzhou Rockchip
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinya and Fuzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec and Xinya Electronic 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 Xinya Electronic Co are associated (or correlated) with Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Xinya Electronic i.e., Xinya Electronic and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Xinya Electronic and Fuzhou Rockchip
Assuming the 90 days trading horizon Xinya Electronic is expected to generate 1.58 times less return on investment than Fuzhou Rockchip. But when comparing it to its historical volatility, Xinya Electronic Co is 1.8 times less risky than Fuzhou Rockchip. It trades about 0.33 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 8,035 in Fuzhou Rockchip Electronics on September 27, 2024 and sell it today you would earn a total of 2,445 from holding Fuzhou Rockchip Electronics or generate 30.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Xinya Electronic |
| Fuzhou Rockchip Elec |
Xinya Electronic and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Fuzhou Rockchip
The main advantage of trading using opposite Xinya Electronic and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Xinya Electronic vs. Shengtak New Material | Xinya Electronic vs. Ningxia Building Materials | Xinya Electronic vs. Jiugui Liquor Co | Xinya Electronic vs. Shenzhen SDG Information |
| Fuzhou Rockchip vs. Ming Yang Smart | Fuzhou Rockchip vs. 159681 | Fuzhou Rockchip vs. 159005 | Fuzhou Rockchip vs. Loctek Ergonomic Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |