Correlation Between Fujian Forecam and Xinjiang Tianshun
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By analyzing existing cross correlation between Fujian Forecam Optics and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Fujian Forecam and Xinjiang Tianshun 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 Fujian Forecam with a short position of Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Forecam and Xinjiang Tianshun.
Diversification Opportunities for Fujian Forecam and Xinjiang Tianshun
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Xinjiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Forecam Optics and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply and Fujian Forecam 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 Fujian Forecam Optics are associated (or correlated) with Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Fujian Forecam i.e., Fujian Forecam and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Fujian Forecam and Xinjiang Tianshun
Assuming the 90 days trading horizon Fujian Forecam Optics is expected to generate 2.18 times more return on investment than Xinjiang Tianshun. However, Fujian Forecam is 2.18 times more volatile than Xinjiang Tianshun Supply. It trades about 0.24 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.2 per unit of risk. If you would invest 1,366 in Fujian Forecam Optics on September 12, 2024 and sell it today you would earn a total of 1,847 from holding Fujian Forecam Optics or generate 135.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Forecam Optics vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Fujian Forecam Optics |
| Xinjiang Tianshun Supply |
Fujian Forecam and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Forecam and Xinjiang Tianshun
The main advantage of trading using opposite Fujian Forecam and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Forecam position performs unexpectedly, Xinjiang Tianshun 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 Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Fujian Forecam vs. Shanghai Metersbonwe FashionAccessories | Fujian Forecam vs. Shaanxi Energy Investment | Fujian Forecam vs. Xiandai Investment Co | Fujian Forecam vs. Kunwu Jiuding Investment |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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