Correlation Between Sichuan Fulin and Xiamen Goldenhome
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Sichuan Fulin and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Xiamen Goldenhome.
Diversification Opportunities for Sichuan Fulin and Xiamen Goldenhome
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Xiamen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Xiamen Goldenhome
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 1.0 times more return on investment than Xiamen Goldenhome. However, Sichuan Fulin is 1.0 times more volatile than Xiamen Goldenhome Co. It trades about 0.28 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about 0.25 per unit of risk. If you would invest 618.00 in Sichuan Fulin Transportation on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Sichuan Fulin Transportation or generate 13.75% 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. Xiamen Goldenhome Co
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Xiamen Goldenhome |
Sichuan Fulin and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Xiamen Goldenhome
The main advantage of trading using opposite Sichuan Fulin and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| Sichuan Fulin vs. Nanjing Putian Telecommunications | Sichuan Fulin vs. Shenzhen Hifuture Electric | Sichuan Fulin vs. Tianjin Realty Development | Sichuan Fulin vs. Shenyang Huitian Thermal |
| Xiamen Goldenhome vs. China Asset Management | Xiamen Goldenhome vs. Chison Medical Technologies | Xiamen Goldenhome vs. CICC Fund Management | Xiamen Goldenhome vs. GKHT Medical Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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