Correlation Between Fuzhou Rockchip and Iat Automobile
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Iat Automobile Technology, you can compare the effects of market volatilities on Fuzhou Rockchip and Iat Automobile 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 Fuzhou Rockchip with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Iat Automobile.
Diversification Opportunities for Fuzhou Rockchip and Iat Automobile
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fuzhou and Iat is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology and Fuzhou Rockchip 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 Fuzhou Rockchip Electronics are associated (or correlated) with Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Iat Automobile go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Iat Automobile
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to generate 1.36 times more return on investment than Iat Automobile. However, Fuzhou Rockchip is 1.36 times more volatile than Iat Automobile Technology. It trades about 0.32 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.13 per unit of risk. If you would invest 8,111 in Fuzhou Rockchip Electronics on September 25, 2024 and sell it today you would earn a total of 2,589 from holding Fuzhou Rockchip Electronics or generate 31.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Fuzhou Rockchip Electronics vs. Iat Automobile Technology
Performance |
Timeline |
Fuzhou Rockchip Elec |
Iat Automobile Technology |
Fuzhou Rockchip and Iat Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fuzhou Rockchip and Iat Automobile
The main advantage of trading using opposite Fuzhou Rockchip and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.Fuzhou Rockchip vs. Ming Yang Smart | Fuzhou Rockchip vs. 159681 | Fuzhou Rockchip vs. 159005 | Fuzhou Rockchip vs. Loctek Ergonomic Technology |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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