Correlation Between Fujian Oriental and Anhui Estone
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By analyzing existing cross correlation between Fujian Oriental Silver and Anhui Estone Materials, you can compare the effects of market volatilities on Fujian Oriental and Anhui Estone 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 Anhui Estone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Anhui Estone.
Diversification Opportunities for Fujian Oriental and Anhui Estone
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Anhui is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Anhui Estone Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Estone Materials 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 Anhui Estone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Estone Materials has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Anhui Estone go up and down completely randomly.
Pair Corralation between Fujian Oriental and Anhui Estone
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to generate 1.21 times more return on investment than Anhui Estone. However, Fujian Oriental is 1.21 times more volatile than Anhui Estone Materials. It trades about -0.09 of its potential returns per unit of risk. Anhui Estone Materials is currently generating about -0.13 per unit of risk. If you would invest 647.00 in Fujian Oriental Silver on December 26, 2024 and sell it today you would lose (131.00) from holding Fujian Oriental Silver or give up 20.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.28% |
Values | Daily Returns |
Fujian Oriental Silver vs. Anhui Estone Materials
Performance |
Timeline |
Fujian Oriental Silver |
Anhui Estone Materials |
Fujian Oriental and Anhui Estone Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Oriental and Anhui Estone
The main advantage of trading using opposite Fujian Oriental and Anhui Estone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Anhui Estone 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 Anhui Estone will offset losses from the drop in Anhui Estone's long position.Fujian Oriental vs. Shaanxi Meineng Clean | Fujian Oriental vs. JCHX Mining Management | Fujian Oriental vs. Fujian Longzhou Transportation | Fujian Oriental vs. Guangdong Jingyi Metal |
Anhui Estone vs. Techshine Electronics Co | Anhui Estone vs. Fujian Nebula Electronics | Anhui Estone vs. Sihui Fuji Electronics | Anhui Estone vs. Suzhou Douson Drilling |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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