Correlation Between Dazhong Transportation and Fujian Boss
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By analyzing existing cross correlation between Dazhong Transportation Group and Fujian Boss Software, you can compare the effects of market volatilities on Dazhong Transportation and Fujian Boss 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 Dazhong Transportation with a short position of Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Fujian Boss.
Diversification Opportunities for Dazhong Transportation and Fujian Boss
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dazhong and Fujian is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software and Dazhong Transportation 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 Dazhong Transportation Group are associated (or correlated) with Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Dazhong Transportation i.e., Dazhong Transportation and Fujian Boss go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Fujian Boss
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 0.88 times more return on investment than Fujian Boss. However, Dazhong Transportation Group is 1.13 times less risky than Fujian Boss. It trades about 0.14 of its potential returns per unit of risk. Fujian Boss Software is currently generating about -0.04 per unit of risk. If you would invest 22.00 in Dazhong Transportation Group on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Dazhong Transportation Group or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Fujian Boss Software
Performance |
| Timeline |
| Dazhong Transportation |
| Fujian Boss Software |
Dazhong Transportation and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Fujian Boss
The main advantage of trading using opposite Dazhong Transportation and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation position performs unexpectedly, Fujian Boss 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 Boss will offset losses from the drop in Fujian Boss' long position.| Dazhong Transportation vs. Anji Foodstuff Co | Dazhong Transportation vs. Citic Guoan Wine | Dazhong Transportation vs. Tonghua Grape Wine | Dazhong Transportation vs. JuneYao Dairy Co |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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