Correlation Between Sichuan Fulin and Anyang Iron
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Anyang Iron Steel, you can compare the effects of market volatilities on Sichuan Fulin and Anyang Iron 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 Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Anyang Iron.
Diversification Opportunities for Sichuan Fulin and Anyang Iron
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sichuan and Anyang is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel 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 Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Anyang Iron go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Anyang Iron
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.75 times more return on investment than Anyang Iron. However, Sichuan Fulin Transportation is 1.34 times less risky than Anyang Iron. It trades about 0.06 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about 0.0 per unit of risk. If you would invest 698.00 in Sichuan Fulin Transportation on October 30, 2024 and sell it today you would earn a total of 34.00 from holding Sichuan Fulin Transportation or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Anyang Iron Steel
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Anyang Iron Steel |
Sichuan Fulin and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Anyang Iron
The main advantage of trading using opposite Sichuan Fulin and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron's long position.| Sichuan Fulin vs. Jiangsu Financial Leasing | Sichuan Fulin vs. Tinavi Medical Technologies | Sichuan Fulin vs. Double Medical Technology | Sichuan Fulin vs. Touchstone International Medical |
| Anyang Iron vs. Zijin Mining Group | Anyang Iron vs. Wanhua Chemical Group | Anyang Iron vs. Baoshan Iron Steel | Anyang Iron vs. Shandong Gold Mining |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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