Correlation Between Sichuan Fulin and Qingdao NovelBeam
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Qingdao NovelBeam Technology, you can compare the effects of market volatilities on Sichuan Fulin and Qingdao NovelBeam 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 Qingdao NovelBeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Qingdao NovelBeam.
Diversification Opportunities for Sichuan Fulin and Qingdao NovelBeam
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Qingdao is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Qingdao NovelBeam Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao NovelBeam 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 Qingdao NovelBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao NovelBeam has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Qingdao NovelBeam go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Qingdao NovelBeam
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.96 times more return on investment than Qingdao NovelBeam. However, Sichuan Fulin Transportation is 1.04 times less risky than Qingdao NovelBeam. It trades about 0.32 of its potential returns per unit of risk. Qingdao NovelBeam Technology is currently generating about -0.09 per unit of risk. If you would invest 667.00 in Sichuan Fulin Transportation on September 13, 2024 and sell it today you would earn a total of 111.00 from holding Sichuan Fulin Transportation or generate 16.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Qingdao NovelBeam Technology
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Qingdao NovelBeam |
Sichuan Fulin and Qingdao NovelBeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Qingdao NovelBeam
The main advantage of trading using opposite Sichuan Fulin and Qingdao NovelBeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Qingdao NovelBeam 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 Qingdao NovelBeam will offset losses from the drop in Qingdao NovelBeam's long position.| Sichuan Fulin vs. Ming Yang Smart | Sichuan Fulin vs. 159681 | Sichuan Fulin vs. 159005 | Sichuan Fulin vs. Loctek Ergonomic Technology |
| Qingdao NovelBeam vs. Guosheng Financial Holding | Qingdao NovelBeam vs. Sichuan Fulin Transportation | Qingdao NovelBeam vs. China Construction Bank | Qingdao NovelBeam vs. Hua Xia Bank |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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