Correlation Between Hygon Information and Fujian Longzhou
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By analyzing existing cross correlation between Hygon Information Technology and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Hygon Information and Fujian Longzhou 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 Hygon Information with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Fujian Longzhou.
Diversification Opportunities for Hygon Information and Fujian Longzhou
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and Fujian is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran and Hygon Information 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 Hygon Information Technology are associated (or correlated) with Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Hygon Information i.e., Hygon Information and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Hygon Information and Fujian Longzhou
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.02 times more return on investment than Fujian Longzhou. However, Hygon Information is 1.02 times more volatile than Fujian Longzhou Transportation. It trades about 0.03 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.17 per unit of risk. If you would invest 12,581 in Hygon Information Technology on October 30, 2024 and sell it today you would earn a total of 219.00 from holding Hygon Information Technology or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Hygon Information |
| Fujian Longzhou Tran |
Hygon Information and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Fujian Longzhou
The main advantage of trading using opposite Hygon Information and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Hygon Information vs. Agricultural Bank of | Hygon Information vs. Industrial and Commercial | Hygon Information vs. Bank of China | Hygon Information vs. China Construction Bank |
| Fujian Longzhou vs. Giantec Semiconductor Corp | Fujian Longzhou vs. Union Semiconductor Co | Fujian Longzhou vs. Eyebright Medical Technology | Fujian Longzhou vs. Montage Technology Co |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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