Correlation Between Sichuan Fulin and Beijing Roborock
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Beijing Roborock Technology, you can compare the effects of market volatilities on Sichuan Fulin and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Beijing Roborock.
Diversification Opportunities for Sichuan Fulin and Beijing Roborock
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sichuan and Beijing is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Beijing Roborock go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Beijing Roborock
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.77 times more return on investment than Beijing Roborock. However, Sichuan Fulin Transportation is 1.3 times less risky than Beijing Roborock. It trades about 0.28 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about -0.13 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Beijing Roborock Technology
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Beijing Roborock Tec |
Sichuan Fulin and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Beijing Roborock
The main advantage of trading using opposite Sichuan Fulin and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock'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 |
| Beijing Roborock vs. CIMC Vehicles Co | Beijing Roborock vs. Guangzhou Jointas Chemical | Beijing Roborock vs. Sichuan Fulin Transportation | Beijing Roborock vs. China Sports Industry |
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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