Correlation Between Shenzhen Fortune and Loongson Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Fortune Trend and Loongson Technology Corp, you can compare the effects of market volatilities on Shenzhen Fortune and Loongson Technology 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 Shenzhen Fortune with a short position of Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Loongson Technology.
Diversification Opportunities for Shenzhen Fortune and Loongson Technology
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Loongson is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp and Shenzhen Fortune 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 Shenzhen Fortune Trend are associated (or correlated) with Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Shenzhen Fortune i.e., Shenzhen Fortune and Loongson Technology go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Loongson Technology
Assuming the 90 days trading horizon Shenzhen Fortune is expected to generate 1.63 times less return on investment than Loongson Technology. In addition to that, Shenzhen Fortune is 1.26 times more volatile than Loongson Technology Corp. It trades about 0.04 of its total potential returns per unit of risk. Loongson Technology Corp is currently generating about 0.07 per unit of volatility. If you would invest 8,202 in Loongson Technology Corp on August 25, 2024 and sell it today you would earn a total of 6,276 from holding Loongson Technology Corp or generate 76.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Fortune Trend vs. Loongson Technology Corp
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Loongson Technology Corp |
Shenzhen Fortune and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Loongson Technology
The main advantage of trading using opposite Shenzhen Fortune and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.| Shenzhen Fortune vs. Agricultural Bank of | Shenzhen Fortune vs. Industrial and Commercial | Shenzhen Fortune vs. Bank of China | Shenzhen Fortune vs. PetroChina Co Ltd |
| Loongson Technology vs. Lutian Machinery Co | Loongson Technology vs. China Longyuan Power | Loongson Technology vs. Changshu Tongrun Auto | Loongson Technology vs. PetroChina Co Ltd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |