Correlation Between Sichuan Fulin and Guangzhou Seagull
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Sichuan Fulin and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Guangzhou Seagull.
Diversification Opportunities for Sichuan Fulin and Guangzhou Seagull
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Guangzhou is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Guangzhou Seagull
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.94 times more return on investment than Guangzhou Seagull. However, Sichuan Fulin Transportation is 1.06 times less risky than Guangzhou Seagull. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.02 per unit of risk. If you would invest 655.00 in Sichuan Fulin Transportation on October 16, 2024 and sell it today you would earn a total of 49.00 from holding Sichuan Fulin Transportation or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Guangzhou Seagull Kitchen |
Sichuan Fulin and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Guangzhou Seagull
The main advantage of trading using opposite Sichuan Fulin and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Sichuan Fulin vs. Harvest Fund Management | Sichuan Fulin vs. Jiahe Foods Industry | Sichuan Fulin vs. Shanghai Ziyan Foods | Sichuan Fulin vs. Jahen Household Products |
| Guangzhou Seagull vs. Hainan Haiqi Transportation | Guangzhou Seagull vs. Xinjiang Baodi Mining | Guangzhou Seagull vs. Hunan TV Broadcast | Guangzhou Seagull 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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