Correlation Between Shenzhen Inovance and Fujian Longzhou
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By analyzing existing cross correlation between Shenzhen Inovance Tech and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Shenzhen Inovance 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 Shenzhen Inovance with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Inovance and Fujian Longzhou.
Diversification Opportunities for Shenzhen Inovance and Fujian Longzhou
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shenzhen and Fujian is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Inovance 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 Shenzhen Inovance 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 Shenzhen Inovance 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 Shenzhen Inovance i.e., Shenzhen Inovance and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Shenzhen Inovance and Fujian Longzhou
Assuming the 90 days trading horizon Shenzhen Inovance Tech is expected to under-perform the Fujian Longzhou. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Inovance Tech is 2.41 times less risky than Fujian Longzhou. The stock trades about -0.08 of its potential returns per unit of risk. The Fujian Longzhou Transportation is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 463.00 in Fujian Longzhou Transportation on September 11, 2025 and sell it today you would earn a total of 491.00 from holding Fujian Longzhou Transportation or generate 106.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Inovance Tech vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Shenzhen Inovance Tech |
| Fujian Longzhou Tran |
Shenzhen Inovance and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Inovance and Fujian Longzhou
The main advantage of trading using opposite Shenzhen Inovance and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Inovance 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.| Shenzhen Inovance vs. Zhejiang Construction Investment | Shenzhen Inovance vs. Beijing Mainstreets Investment | Shenzhen Inovance vs. Marssenger Kitchenware Co | Shenzhen Inovance vs. Hefei Metalforming Mach |
| Fujian Longzhou vs. Guangzhou Haige Communications | Fujian Longzhou vs. Eastern Communications Co | Fujian Longzhou vs. Youyou Foods Co | Fujian Longzhou vs. BlueFocus Communication Group |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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