Correlation Between Sichuan Fulin and Beijing Mainstreets
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Fulin Transportation and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Sichuan Fulin and Beijing Mainstreets 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 Sichuan Fulin with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Beijing Mainstreets.
Diversification Opportunities for Sichuan Fulin and Beijing Mainstreets
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Beijing is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Sichuan Fulin 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 Sichuan Fulin Transportation are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Beijing Mainstreets
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to under-perform the Beijing Mainstreets. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Fulin Transportation is 1.2 times less risky than Beijing Mainstreets. The stock trades about -0.1 of its potential returns per unit of risk. The Beijing Mainstreets Investment is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 237.00 in Beijing Mainstreets Investment on October 20, 2024 and sell it today you would earn a total of 22.00 from holding Beijing Mainstreets Investment or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Beijing Mainstreets |
Sichuan Fulin and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Beijing Mainstreets
The main advantage of trading using opposite Sichuan Fulin and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Sichuan Fulin vs. Beijing Baolande Software | Sichuan Fulin vs. Inspur Software Co | Sichuan Fulin vs. Digiwin Software Co | Sichuan Fulin vs. Cangzhou Mingzhu Plastic |
| Beijing Mainstreets vs. Shanghai Material Trading | Beijing Mainstreets vs. Zhongyin Babi Food | Beijing Mainstreets vs. Eastroc Beverage Group | Beijing Mainstreets vs. Harbin Hatou Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |