Correlation Between Sichuan Fulin and Jonjee Hi
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Sichuan Fulin and Jonjee Hi 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 Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Jonjee Hi.
Diversification Opportunities for Sichuan Fulin and Jonjee Hi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Jonjee is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Jonjee Hi go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Jonjee Hi
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.99 times more return on investment than Jonjee Hi. However, Sichuan Fulin Transportation is 1.01 times less risky than Jonjee Hi. It trades about 0.21 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.16 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Jonjee Hi tech |
Sichuan Fulin and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Jonjee Hi
The main advantage of trading using opposite Sichuan Fulin and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| Sichuan Fulin vs. PetroChina Co Ltd | Sichuan Fulin vs. China State Construction | Sichuan Fulin vs. China Mobile Limited | Sichuan Fulin vs. Industrial and Commercial |
| Jonjee Hi vs. Jiangsu Xinri E Vehicle | Jonjee Hi vs. Xizi Clean Energy | Jonjee Hi vs. Shaanxi Meineng Clean | Jonjee Hi vs. China National Software |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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