Correlation Between Sichuan Fulin and China Kings
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By analyzing existing cross correlation between Sichuan Fulin Transportation and China Kings Resources, you can compare the effects of market volatilities on Sichuan Fulin and China Kings 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 China Kings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and China Kings.
Diversification Opportunities for Sichuan Fulin and China Kings
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sichuan and China is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and China Kings Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Kings Resources 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 China Kings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Kings Resources has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and China Kings go up and down completely randomly.
Pair Corralation between Sichuan Fulin and China Kings
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 1.08 times more return on investment than China Kings. However, Sichuan Fulin is 1.08 times more volatile than China Kings Resources. It trades about 0.01 of its potential returns per unit of risk. China Kings Resources is currently generating about 0.01 per unit of risk. If you would invest 794.00 in Sichuan Fulin Transportation on September 12, 2024 and sell it today you would lose (49.00) from holding Sichuan Fulin Transportation or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. China Kings Resources
Performance |
| Timeline |
| Sichuan Fulin Transp |
| China Kings Resources |
Sichuan Fulin and China Kings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and China Kings
The main advantage of trading using opposite Sichuan Fulin and China Kings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, China Kings 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 China Kings will offset losses from the drop in China Kings' long position.| Sichuan Fulin vs. Agricultural Bank of | Sichuan Fulin vs. Industrial and Commercial | Sichuan Fulin vs. Bank of China | Sichuan Fulin vs. PetroChina Co Ltd |
| China Kings vs. Sichuan Fulin Transportation | China Kings vs. Shaanxi Broadcast TV | China Kings vs. Juneyao Airlines | China Kings vs. Shanghai Broadband 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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