Correlation Between Sichuan Fulin and Hengkang Medical
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Hengkang Medical Group, you can compare the effects of market volatilities on Sichuan Fulin and Hengkang Medical 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 Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Hengkang Medical.
Diversification Opportunities for Sichuan Fulin and Hengkang Medical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Hengkang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical 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 Hengkang Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengkang Medical has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Hengkang Medical go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Hengkang Medical
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.56 times more return on investment than Hengkang Medical. However, Sichuan Fulin Transportation is 1.79 times less risky than Hengkang Medical. It trades about 0.34 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about 0.08 per unit of risk. If you would invest 657.00 in Sichuan Fulin Transportation on September 12, 2024 and sell it today you would earn a total of 121.00 from holding Sichuan Fulin Transportation or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Hengkang Medical Group
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Hengkang Medical |
Sichuan Fulin and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Hengkang Medical
The main advantage of trading using opposite Sichuan Fulin and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Hengkang Medical 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 Hengkang Medical will offset losses from the drop in Hengkang Medical'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 |
| Hengkang Medical vs. Guangzhou Haige Communications | Hengkang Medical vs. Xinjiang Baodi Mining | Hengkang Medical vs. Zhengzhou Coal Mining | Hengkang Medical vs. Wintao Communications Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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