Correlation Between Fujian Oriental and Cultural Investment
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By analyzing existing cross correlation between Fujian Oriental Silver and Cultural Investment Holdings, you can compare the effects of market volatilities on Fujian Oriental and Cultural Investment 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 Oriental with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Cultural Investment.
Diversification Opportunities for Fujian Oriental and Cultural Investment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Cultural is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Fujian Oriental 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 Oriental Silver are associated (or correlated) with Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Cultural Investment go up and down completely randomly.
Pair Corralation between Fujian Oriental and Cultural Investment
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to generate 1.24 times more return on investment than Cultural Investment. However, Fujian Oriental is 1.24 times more volatile than Cultural Investment Holdings. It trades about 0.07 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.07 per unit of risk. If you would invest 574.00 in Fujian Oriental Silver on September 26, 2024 and sell it today you would earn a total of 83.00 from holding Fujian Oriental Silver or generate 14.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fujian Oriental Silver vs. Cultural Investment Holdings
Performance |
Timeline |
Fujian Oriental Silver |
Cultural Investment |
Fujian Oriental and Cultural Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Oriental and Cultural Investment
The main advantage of trading using opposite Fujian Oriental and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology Co |
Cultural Investment vs. Gome Telecom Equipment | Cultural Investment vs. Bus Online Co | Cultural Investment vs. Holitech Technology Co | Cultural Investment vs. Zotye Automobile Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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