Correlation Between Fujian Longzhou and Dongguan Tarry
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Longzhou Transportation and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Fujian Longzhou and Dongguan Tarry 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 Longzhou with a short position of Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Dongguan Tarry.
Diversification Opportunities for Fujian Longzhou and Dongguan Tarry
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Dongguan is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect and Fujian Longzhou 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 Longzhou Transportation are associated (or correlated) with Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Dongguan Tarry
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 0.89 times more return on investment than Dongguan Tarry. However, Fujian Longzhou Transportation is 1.13 times less risky than Dongguan Tarry. It trades about 0.26 of its potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about 0.06 per unit of risk. If you would invest 413.00 in Fujian Longzhou Transportation on November 29, 2024 and sell it today you would earn a total of 35.00 from holding Fujian Longzhou Transportation or generate 8.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fujian Longzhou Transportation vs. Dongguan Tarry Electronics
Performance |
Timeline |
Fujian Longzhou Tran |
Dongguan Tarry Elect |
Fujian Longzhou and Dongguan Tarry Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Longzhou and Dongguan Tarry
The main advantage of trading using opposite Fujian Longzhou and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.Fujian Longzhou vs. Tjk Machinery Tianjin | ||
Fujian Longzhou vs. Allied Machinery Co | ||
Fujian Longzhou vs. Long Yuan Construction | ||
Fujian Longzhou vs. Gansu Huangtai Wine marketing |
Dongguan Tarry vs. Ningbo Kangqiang Electronics | ||
Dongguan Tarry vs. Xiamen Insight Investment | ||
Dongguan Tarry vs. Harson Trading China | ||
Dongguan Tarry vs. Citic Guoan Wine |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |