Correlation Between Allwin Telecommunicatio and Fujian Newland
Specify exactly 2 symbols:
By analyzing existing cross correlation between Allwin Telecommunication Co and Fujian Newland Computer, you can compare the effects of market volatilities on Allwin Telecommunicatio and Fujian Newland 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 Allwin Telecommunicatio with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Fujian Newland.
Diversification Opportunities for Allwin Telecommunicatio and Fujian Newland
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allwin and Fujian is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer and Allwin Telecommunicatio 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 Allwin Telecommunication Co are associated (or correlated) with Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Fujian Newland go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Fujian Newland
Assuming the 90 days trading horizon Allwin Telecommunicatio is expected to generate 77.44 times less return on investment than Fujian Newland. In addition to that, Allwin Telecommunicatio is 1.4 times more volatile than Fujian Newland Computer. It trades about 0.0 of its total potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.08 per unit of volatility. If you would invest 1,811 in Fujian Newland Computer on October 2, 2024 and sell it today you would earn a total of 253.00 from holding Fujian Newland Computer or generate 13.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Allwin Telecommunication Co vs. Fujian Newland Computer
Performance |
Timeline |
Allwin Telecommunicatio |
Fujian Newland Computer |
Allwin Telecommunicatio and Fujian Newland Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allwin Telecommunicatio and Fujian Newland
The main advantage of trading using opposite Allwin Telecommunicatio and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, Fujian Newland 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 Newland will offset losses from the drop in Fujian Newland's long position.Allwin Telecommunicatio vs. Industrial and Commercial | Allwin Telecommunicatio vs. Agricultural Bank of | Allwin Telecommunicatio vs. China Construction Bank | Allwin Telecommunicatio vs. Bank of China |
Fujian Newland vs. Industrial and Commercial | Fujian Newland vs. Agricultural Bank of | Fujian Newland vs. China Construction Bank | Fujian Newland vs. Bank of China |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |