Correlation Between Sichuan Fulin and Nantong Haixing
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Nantong Haixing Electronics, you can compare the effects of market volatilities on Sichuan Fulin and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Nantong Haixing.
Diversification Opportunities for Sichuan Fulin and Nantong Haixing
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sichuan and Nantong is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Nantong Haixing go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Nantong Haixing
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 1.29 times more return on investment than Nantong Haixing. However, Sichuan Fulin is 1.29 times more volatile than Nantong Haixing Electronics. It trades about 0.02 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.01 per unit of risk. If you would invest 680.00 in Sichuan Fulin Transportation on October 16, 2024 and sell it today you would earn a total of 46.00 from holding Sichuan Fulin Transportation or generate 6.76% 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. Nantong Haixing Electronics
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Nantong Haixing Elec |
Sichuan Fulin and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Nantong Haixing
The main advantage of trading using opposite Sichuan Fulin and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Sichuan Fulin vs. Shuhua Sports Co | Sichuan Fulin vs. Shanghai Yaoji Playing | Sichuan Fulin vs. Songz Automobile Air | Sichuan Fulin vs. Sportsoul Co Ltd |
| Nantong Haixing vs. Sichuan Fulin Transportation | Nantong Haixing vs. GRIPM Advanced Materials | Nantong Haixing vs. Lander Sports Development | Nantong Haixing 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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