Correlation Between Sichuan Fulin and Jinhui Mining
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Jinhui Mining Co, you can compare the effects of market volatilities on Sichuan Fulin and Jinhui Mining 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Jinhui Mining.
Diversification Opportunities for Sichuan Fulin and Jinhui Mining
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sichuan and Jinhui is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Jinhui Mining go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Jinhui Mining
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 1.21 times more return on investment than Jinhui Mining. However, Sichuan Fulin is 1.21 times more volatile than Jinhui Mining Co. It trades about 0.02 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.0 per unit of risk. If you would invest 655.00 in Sichuan Fulin Transportation on October 11, 2024 and sell it today you would earn a total of 52.00 from holding Sichuan Fulin Transportation or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Jinhui Mining Co
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Jinhui Mining |
Sichuan Fulin and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Jinhui Mining
The main advantage of trading using opposite Sichuan Fulin and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Jinhui Mining 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| Sichuan Fulin vs. Kweichow Moutai Co | Sichuan Fulin vs. Contemporary Amperex Technology | Sichuan Fulin vs. G bits Network Technology | Sichuan Fulin vs. Beijing Roborock Technology |
| Jinhui Mining vs. Sichuan Fulin Transportation | Jinhui Mining vs. Haima Automobile Group | Jinhui Mining vs. Fujian Longzhou Transportation | Jinhui Mining vs. Wuhan Yangtze Communication |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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