Correlation Between Sichuan Fulin and Yuan Longping
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Yuan Longping High tech, you can compare the effects of market volatilities on Sichuan Fulin and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Yuan Longping.
Diversification Opportunities for Sichuan Fulin and Yuan Longping
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sichuan and Yuan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Yuan Longping go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Yuan Longping
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to under-perform the Yuan Longping. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Fulin Transportation is 1.04 times less risky than Yuan Longping. The stock trades about -0.13 of its potential returns per unit of risk. The Yuan Longping High tech is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,079 in Yuan Longping High tech on October 25, 2024 and sell it today you would lose (74.00) from holding Yuan Longping High tech or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Yuan Longping High tech
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Yuan Longping High |
Sichuan Fulin and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Yuan Longping
The main advantage of trading using opposite Sichuan Fulin and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Sichuan Fulin vs. HeBei Jinniu Chemical | Sichuan Fulin vs. Lianhe Chemical Technology | Sichuan Fulin vs. Dazhong Transportation Group | Sichuan Fulin vs. Xiangtan Electrochemical Scientific |
| Yuan Longping vs. Agricultural Bank of | Yuan Longping vs. Postal Savings Bank | Yuan Longping vs. Bank of Communications | Yuan Longping vs. China Merchants Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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