Correlation Between Sichuan Fulin and Northern United
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Northern United Publishing, you can compare the effects of market volatilities on Sichuan Fulin and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Northern United.
Diversification Opportunities for Sichuan Fulin and Northern United
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Northern is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Northern United go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Northern United
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.9 times more return on investment than Northern United. However, Sichuan Fulin Transportation is 1.11 times less risky than Northern United. It trades about 0.38 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.22 per unit of risk. If you would invest 667.00 in Sichuan Fulin Transportation on September 13, 2024 and sell it today you would earn a total of 155.00 from holding Sichuan Fulin Transportation or generate 23.24% 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. Northern United Publishing
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Northern United Publ |
Sichuan Fulin and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Northern United
The main advantage of trading using opposite Sichuan Fulin and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Sichuan Fulin vs. Ming Yang Smart | Sichuan Fulin vs. 159681 | Sichuan Fulin vs. 159005 | Sichuan Fulin vs. Loctek Ergonomic Technology |
| Northern United vs. Guangzhou Haige Communications | Northern United vs. Songz Automobile Air | Northern United vs. Zhongtong Guomai Communication | Northern United vs. Anhui Jianghuai Automobile |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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