Correlation Between Sichuan Fulin and Wuliangye Yibin
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Wuliangye Yibin Co, you can compare the effects of market volatilities on Sichuan Fulin and Wuliangye Yibin 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 Wuliangye Yibin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Wuliangye Yibin.
Diversification Opportunities for Sichuan Fulin and Wuliangye Yibin
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Wuliangye is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Wuliangye Yibin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuliangye Yibin 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 Wuliangye Yibin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuliangye Yibin has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Wuliangye Yibin go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Wuliangye Yibin
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 1.37 times more return on investment than Wuliangye Yibin. However, Sichuan Fulin is 1.37 times more volatile than Wuliangye Yibin Co. It trades about 0.01 of its potential returns per unit of risk. Wuliangye Yibin Co is currently generating about 0.0 per unit of risk. If you would invest 794.00 in Sichuan Fulin Transportation on September 12, 2024 and sell it today you would lose (49.00) from holding Sichuan Fulin Transportation or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Wuliangye Yibin Co
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Wuliangye Yibin |
Sichuan Fulin and Wuliangye Yibin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Wuliangye Yibin
The main advantage of trading using opposite Sichuan Fulin and Wuliangye Yibin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Wuliangye Yibin 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 Wuliangye Yibin will offset losses from the drop in Wuliangye Yibin's long position.| Sichuan Fulin vs. Agricultural Bank of | Sichuan Fulin vs. Industrial and Commercial | Sichuan Fulin vs. Bank of China | Sichuan Fulin vs. PetroChina Co Ltd |
| Wuliangye Yibin vs. Dazhong Transportation Group | Wuliangye Yibin vs. Healthcare Co | Wuliangye Yibin vs. Anhui Huaren Health | Wuliangye Yibin vs. Sichuan Fulin Transportation |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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