Correlation Between Sichuan Fulin and Ningbo David
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Fulin Transportation and Ningbo David Medical, you can compare the effects of market volatilities on Sichuan Fulin and Ningbo David 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 Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Ningbo David.
Diversification Opportunities for Sichuan Fulin and Ningbo David
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Ningbo is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David 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 Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Ningbo David go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Ningbo David
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.94 times more return on investment than Ningbo David. However, Sichuan Fulin Transportation is 1.06 times less risky than Ningbo David. It trades about 0.08 of its potential returns per unit of risk. Ningbo David Medical is currently generating about 0.04 per unit of risk. If you would invest 555.00 in Sichuan Fulin Transportation on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Sichuan Fulin Transportation or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Ningbo David Medical
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Ningbo David Medical |
Sichuan Fulin and Ningbo David Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Ningbo David
The main advantage of trading using opposite Sichuan Fulin and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David's long position.| Sichuan Fulin vs. Nanjing Putian Telecommunications | Sichuan Fulin vs. Shenzhen Hifuture Electric | Sichuan Fulin vs. Tianjin Realty Development | Sichuan Fulin vs. Shenyang Huitian Thermal |
| Ningbo David vs. Nanjing Putian Telecommunications | Ningbo David vs. Shenzhen Hifuture Electric | Ningbo David vs. Tianjin Realty Development | Ningbo David vs. Shenyang Huitian Thermal |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |