Correlation Between Western Superconducting and Fujian Longzhou
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By analyzing existing cross correlation between Western Superconducting Tech and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Western Superconducting and Fujian Longzhou 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 Western Superconducting with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Superconducting and Fujian Longzhou.
Diversification Opportunities for Western Superconducting and Fujian Longzhou
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and Fujian is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Western Superconducting Tech and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran and Western Superconducting 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 Western Superconducting Tech are associated (or correlated) with Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Western Superconducting i.e., Western Superconducting and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Western Superconducting and Fujian Longzhou
Assuming the 90 days trading horizon Western Superconducting Tech is expected to generate 1.01 times more return on investment than Fujian Longzhou. However, Western Superconducting is 1.01 times more volatile than Fujian Longzhou Transportation. It trades about 0.11 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.11 per unit of risk. If you would invest 3,480 in Western Superconducting Tech on September 25, 2024 and sell it today you would earn a total of 847.00 from holding Western Superconducting Tech or generate 24.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Western Superconducting Tech vs. Fujian Longzhou Transportation
Performance |
Timeline |
Western Superconducting |
Fujian Longzhou Tran |
Western Superconducting and Fujian Longzhou Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Superconducting and Fujian Longzhou
The main advantage of trading using opposite Western Superconducting and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Superconducting position performs unexpectedly, Fujian Longzhou 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 Longzhou will offset losses from the drop in Fujian Longzhou's long position.Western Superconducting vs. Bank of China | Western Superconducting vs. Kweichow Moutai Co | Western Superconducting vs. PetroChina Co Ltd | Western Superconducting vs. Bank of Communications |
Fujian Longzhou vs. Xiamen Bank Co | Fujian Longzhou vs. Northking Information Technology | Fujian Longzhou vs. Niutech Environment Technology | Fujian Longzhou vs. Western Superconducting Tech |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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