Correlation Between Sichuan Fulin and Oppein Home
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Oppein Home Group, you can compare the effects of market volatilities on Sichuan Fulin and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Oppein Home.
Diversification Opportunities for Sichuan Fulin and Oppein Home
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Oppein is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Oppein Home go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Oppein Home
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 1.02 times more return on investment than Oppein Home. However, Sichuan Fulin is 1.02 times more volatile than Oppein Home Group. It trades about 0.01 of its potential returns per unit of risk. Oppein Home Group is currently generating about -0.02 per unit of risk. If you would invest 734.00 in Sichuan Fulin Transportation on September 3, 2024 and sell it today you would lose (31.00) from holding Sichuan Fulin Transportation or give up 4.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Oppein Home Group
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Oppein Home Group |
Sichuan Fulin and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Oppein Home
The main advantage of trading using opposite Sichuan Fulin and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Sichuan Fulin vs. Humanwell Healthcare Group | Sichuan Fulin vs. Healthcare Co | Sichuan Fulin vs. Xizi Clean Energy | Sichuan Fulin vs. Yunnan Jianzhijia Health Chain |
| Oppein Home vs. PetroChina Co Ltd | Oppein Home vs. China Mobile Limited | Oppein Home vs. Industrial and Commercial | Oppein Home vs. China Life Insurance |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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