Correlation Between Sichuan Fulin and Fujian Boss
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Fujian Boss Software, you can compare the effects of market volatilities on Sichuan Fulin and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Fujian Boss.
Diversification Opportunities for Sichuan Fulin and Fujian Boss
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Fujian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Fujian Boss go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Fujian Boss
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.53 times more return on investment than Fujian Boss. However, Sichuan Fulin Transportation is 1.88 times less risky than Fujian Boss. It trades about 0.41 of its potential returns per unit of risk. Fujian Boss Software is currently generating about 0.12 per unit of risk. If you would invest 613.00 in Sichuan Fulin Transportation on September 5, 2024 and sell it today you would earn a total of 119.00 from holding Sichuan Fulin Transportation or generate 19.41% 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. Fujian Boss Software
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Fujian Boss Software |
Sichuan Fulin and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Fujian Boss
The main advantage of trading using opposite Sichuan Fulin and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.| Sichuan Fulin vs. Kweichow Moutai Co | Sichuan Fulin vs. NAURA Technology Group | Sichuan Fulin vs. Zhejiang Orient Gene | Sichuan Fulin vs. APT Medical |
| Fujian Boss vs. Guangdong Jinma Entertainment | Fujian Boss vs. Hainan Mining Co | Fujian Boss vs. JiShi Media Co | Fujian Boss vs. Ye Chiu Metal |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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