Correlation Between Fujian Newland and Guangdong Jingyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Newland Computer and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Fujian Newland and Guangdong Jingyi 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 Newland with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Guangdong Jingyi.
Diversification Opportunities for Fujian Newland and Guangdong Jingyi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Guangdong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Fujian Newland 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 Newland Computer are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Fujian Newland i.e., Fujian Newland and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Fujian Newland and Guangdong Jingyi
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.94 times more return on investment than Guangdong Jingyi. However, Fujian Newland Computer is 1.06 times less risky than Guangdong Jingyi. It trades about 0.05 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.02 per unit of risk. If you would invest 1,306 in Fujian Newland Computer on September 26, 2024 and sell it today you would earn a total of 751.00 from holding Fujian Newland Computer or generate 57.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Fujian Newland Computer vs. Guangdong Jingyi Metal
Performance |
Timeline |
Fujian Newland Computer |
Guangdong Jingyi Metal |
Fujian Newland and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Newland and Guangdong Jingyi
The main advantage of trading using opposite Fujian Newland and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.Fujian Newland vs. Industrial and Commercial | Fujian Newland vs. Agricultural Bank of | Fujian Newland vs. China Construction Bank | Fujian Newland vs. Bank of China |
Guangdong Jingyi vs. Guangzhou Jinyi Media | Guangdong Jingyi vs. Heilongjiang Publishing Media | Guangdong Jingyi vs. Dook Media Group | Guangdong Jingyi vs. GRIPM Advanced Materials |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |