Correlation Between FSPG Hi and Beijing Compass
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By analyzing existing cross correlation between FSPG Hi Tech Co and Beijing Compass Technology, you can compare the effects of market volatilities on FSPG Hi and Beijing Compass 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 FSPG Hi with a short position of Beijing Compass. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Beijing Compass.
Diversification Opportunities for FSPG Hi and Beijing Compass
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FSPG and Beijing is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Beijing Compass Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Compass Tech and FSPG Hi 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 FSPG Hi Tech Co are associated (or correlated) with Beijing Compass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Compass Tech has no effect on the direction of FSPG Hi i.e., FSPG Hi and Beijing Compass go up and down completely randomly.
Pair Corralation between FSPG Hi and Beijing Compass
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to under-perform the Beijing Compass. In addition to that, FSPG Hi is 1.04 times more volatile than Beijing Compass Technology. It trades about -0.44 of its total potential returns per unit of risk. Beijing Compass Technology is currently generating about 0.07 per unit of volatility. If you would invest 8,918 in Beijing Compass Technology on September 24, 2024 and sell it today you would earn a total of 417.00 from holding Beijing Compass Technology or generate 4.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
FSPG Hi Tech Co vs. Beijing Compass Technology
Performance |
Timeline |
FSPG Hi Tech |
Beijing Compass Tech |
FSPG Hi and Beijing Compass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FSPG Hi and Beijing Compass
The main advantage of trading using opposite FSPG Hi and Beijing Compass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Beijing Compass 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 Beijing Compass will offset losses from the drop in Beijing Compass' long position.FSPG Hi vs. Zijin Mining Group | FSPG Hi vs. Wanhua Chemical Group | FSPG Hi vs. Baoshan Iron Steel | FSPG Hi vs. Shandong Gold Mining |
Beijing Compass vs. XinJiang GuoTong Pipeline | Beijing Compass vs. FSPG Hi Tech Co | Beijing Compass vs. Fiberhome Telecommunication Technologies | Beijing Compass vs. Shandong Longquan Pipeline |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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