Correlation Between Sichuan Fulin and Longjian Road
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Longjian Road Bridge, you can compare the effects of market volatilities on Sichuan Fulin and Longjian Road 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 Longjian Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Longjian Road.
Diversification Opportunities for Sichuan Fulin and Longjian Road
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Longjian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Longjian Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longjian Road Bridge 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 Longjian Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longjian Road Bridge has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Longjian Road go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Longjian Road
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 1.28 times more return on investment than Longjian Road. However, Sichuan Fulin is 1.28 times more volatile than Longjian Road Bridge. It trades about 0.21 of its potential returns per unit of risk. Longjian Road Bridge is currently generating about 0.0 per unit of risk. If you would invest 627.00 in Sichuan Fulin Transportation on August 29, 2024 and sell it today you would earn a total of 69.00 from holding Sichuan Fulin Transportation or generate 11.0% 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. Longjian Road Bridge
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Longjian Road Bridge |
Sichuan Fulin and Longjian Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Longjian Road
The main advantage of trading using opposite Sichuan Fulin and Longjian Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Longjian Road 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 Longjian Road will offset losses from the drop in Longjian Road's long position.| Sichuan Fulin vs. Cambricon Technologies Corp | Sichuan Fulin vs. Loongson Technology Corp | Sichuan Fulin vs. Chongqing Road Bridge | Sichuan Fulin vs. Shenzhen Fortune Trend |
| Longjian Road vs. Guangzhou Jinyi Media | Longjian Road vs. Nexchip Semiconductor Corp | Longjian Road vs. Northern United Publishing | Longjian Road vs. Sportsoul Co Ltd |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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