Correlation Between Fujian Green and Xingguang Agricultural
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By analyzing existing cross correlation between Fujian Green Pine and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Fujian Green and Xingguang Agricultural 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 Green with a short position of Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Green and Xingguang Agricultural.
Diversification Opportunities for Fujian Green and Xingguang Agricultural
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fujian and Xingguang is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Green Pine and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural and Fujian Green 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 Green Pine are associated (or correlated) with Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Fujian Green i.e., Fujian Green and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Fujian Green and Xingguang Agricultural
Assuming the 90 days trading horizon Fujian Green Pine is expected to generate 0.43 times more return on investment than Xingguang Agricultural. However, Fujian Green Pine is 2.34 times less risky than Xingguang Agricultural. It trades about 0.07 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.03 per unit of risk. If you would invest 517.00 in Fujian Green Pine on December 27, 2024 and sell it today you would earn a total of 37.00 from holding Fujian Green Pine or generate 7.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fujian Green Pine vs. Xingguang Agricultural Mach
Performance |
Timeline |
Fujian Green Pine |
Xingguang Agricultural |
Fujian Green and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Green and Xingguang Agricultural
The main advantage of trading using opposite Fujian Green and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Green position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.Fujian Green vs. Runben Biotechnology Co | Fujian Green vs. Wasu Media Holding | Fujian Green vs. Maccura Biotechnology Co | Fujian Green vs. Zhejiang Daily Media |
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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