Correlation Between Sichuan Fulin and Xingguang Agricultural
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Sichuan Fulin and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Xingguang Agricultural.
Diversification Opportunities for Sichuan Fulin and Xingguang Agricultural
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Xingguang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Xingguang Agricultural
Assuming the 90 days trading horizon Sichuan Fulin is expected to generate 1.03 times less return on investment than Xingguang Agricultural. But when comparing it to its historical volatility, Sichuan Fulin Transportation is 1.2 times less risky than Xingguang Agricultural. It trades about 0.3 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 658.00 in Xingguang Agricultural Mach on September 13, 2024 and sell it today you would earn a total of 369.00 from holding Xingguang Agricultural Mach or generate 56.08% 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. Xingguang Agricultural Mach
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Xingguang Agricultural |
Sichuan Fulin and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Xingguang Agricultural
The main advantage of trading using opposite Sichuan Fulin and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Sichuan Fulin vs. Ming Yang Smart | Sichuan Fulin vs. 159681 | Sichuan Fulin vs. 159005 | Sichuan Fulin vs. Loctek Ergonomic 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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