Correlation Between Sichuan Fulin and Wuhan Hvsen
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Sichuan Fulin and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Wuhan Hvsen.
Diversification Opportunities for Sichuan Fulin and Wuhan Hvsen
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Wuhan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Wuhan Hvsen
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.89 times more return on investment than Wuhan Hvsen. However, Sichuan Fulin Transportation is 1.13 times less risky than Wuhan Hvsen. It trades about -0.19 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.3 per unit of risk. If you would invest 828.00 in Sichuan Fulin Transportation on October 17, 2024 and sell it today you would lose (105.00) from holding Sichuan Fulin Transportation or give up 12.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Wuhan Hvsen Biotechnology |
Sichuan Fulin and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Wuhan Hvsen
The main advantage of trading using opposite Sichuan Fulin and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Sichuan Fulin vs. Success Electronics | Sichuan Fulin vs. Epoxy Base Electronic | Sichuan Fulin vs. Integrated Electronic Systems | Sichuan Fulin vs. Beijing YanDong MicroElectronic |
| Wuhan Hvsen vs. Zhengzhou Qianweiyangchu Food | Wuhan Hvsen vs. Sichuan Fulin Transportation | Wuhan Hvsen vs. Guilin Seamild Foods | Wuhan Hvsen vs. Longjian Road Bridge |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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