Correlation Between Sichuan Fulin and Luolai Home
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Luolai Home Textile, you can compare the effects of market volatilities on Sichuan Fulin and Luolai Home 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 Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Luolai Home.
Diversification Opportunities for Sichuan Fulin and Luolai Home
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Luolai is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile 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 Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Luolai Home go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Luolai Home
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 1.03 times more return on investment than Luolai Home. However, Sichuan Fulin is 1.03 times more volatile than Luolai Home Textile. It trades about 0.38 of its potential returns per unit of risk. Luolai Home Textile is currently generating about 0.31 per unit of risk. If you would invest 667.00 in Sichuan Fulin Transportation on September 13, 2024 and sell it today you would earn a total of 155.00 from holding Sichuan Fulin Transportation or generate 23.24% 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. Luolai Home Textile
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Luolai Home Textile |
Sichuan Fulin and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Luolai Home
The main advantage of trading using opposite Sichuan Fulin and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home's long position.| Sichuan Fulin vs. Ming Yang Smart | Sichuan Fulin vs. 159681 | Sichuan Fulin vs. 159005 | Sichuan Fulin vs. Loctek Ergonomic Technology |
| Luolai Home vs. Nanjing Putian Telecommunications | Luolai Home vs. Tianjin Realty Development | Luolai Home vs. Kangyue Technology Co | Luolai Home vs. Shenzhen Hifuture Electric |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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