Correlation Between Datang HuaYin and Fujian Newland
Specify exactly 2 symbols:
By analyzing existing cross correlation between Datang HuaYin Electric and Fujian Newland Computer, you can compare the effects of market volatilities on Datang HuaYin 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 Datang HuaYin with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang HuaYin and Fujian Newland.
Diversification Opportunities for Datang HuaYin and Fujian Newland
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Datang and Fujian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Datang HuaYin Electric 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 Datang HuaYin 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 Datang HuaYin Electric 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 Datang HuaYin i.e., Datang HuaYin and Fujian Newland go up and down completely randomly.
Pair Corralation between Datang HuaYin and Fujian Newland
Assuming the 90 days trading horizon Datang HuaYin Electric is expected to under-perform the Fujian Newland. But the stock apears to be less risky and, when comparing its historical volatility, Datang HuaYin Electric is 1.32 times less risky than Fujian Newland. The stock trades about -0.1 of its potential returns per unit of risk. The Fujian Newland Computer is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,975 in Fujian Newland Computer on September 24, 2024 and sell it today you would earn a total of 99.00 from holding Fujian Newland Computer or generate 5.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Datang HuaYin Electric vs. Fujian Newland Computer
Performance |
Timeline |
Datang HuaYin Electric |
Fujian Newland Computer |
Datang HuaYin and Fujian Newland Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Datang HuaYin and Fujian Newland
The main advantage of trading using opposite Datang HuaYin and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang HuaYin 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.Datang HuaYin vs. New China Life | Datang HuaYin vs. Ming Yang Smart | Datang HuaYin vs. 159681 | Datang HuaYin vs. 159005 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Stocks Directory Find actively traded stocks across global markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |