Correlation Between Zhongshan Public and Sichuan Fulin
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By analyzing existing cross correlation between Zhongshan Public Utilities and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Zhongshan Public and Sichuan Fulin 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 Zhongshan Public with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Sichuan Fulin.
Diversification Opportunities for Zhongshan Public and Sichuan Fulin
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongshan and Sichuan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Zhongshan Public and Sichuan Fulin
Assuming the 90 days trading horizon Zhongshan Public is expected to generate 14.86 times less return on investment than Sichuan Fulin. But when comparing it to its historical volatility, Zhongshan Public Utilities is 1.22 times less risky than Sichuan Fulin. It trades about 0.02 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 618.00 in Sichuan Fulin Transportation on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Sichuan Fulin Transportation or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Zhongshan Public Uti |
| Sichuan Fulin Transp |
Zhongshan Public and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Sichuan Fulin
The main advantage of trading using opposite Zhongshan Public and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.| Zhongshan Public vs. Anhui Fuhuang Steel | Zhongshan Public vs. Gansu Jiu Steel | Zhongshan Public vs. Fujian Nanwang Environment | Zhongshan Public vs. Yindu Kitchen Equipment |
| Sichuan Fulin vs. Nanjing Putian Telecommunications | Sichuan Fulin vs. Shenzhen Hifuture Electric | Sichuan Fulin vs. Tianjin Realty Development | Sichuan Fulin vs. Shenyang Huitian Thermal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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