Correlation Between Sichuan Yahua and Sungrow Power
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Sungrow Power Supply, you can compare the effects of market volatilities on Sichuan Yahua and Sungrow Power 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 Yahua with a short position of Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Sungrow Power.
Diversification Opportunities for Sichuan Yahua and Sungrow Power
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sichuan and Sungrow is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply and Sichuan Yahua 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 Yahua Industrial are associated (or correlated) with Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Sungrow Power go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Sungrow Power
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to under-perform the Sungrow Power. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Yahua Industrial is 1.19 times less risky than Sungrow Power. The stock trades about -0.02 of its potential returns per unit of risk. The Sungrow Power Supply is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,023 in Sungrow Power Supply on September 12, 2024 and sell it today you would earn a total of 828.00 from holding Sungrow Power Supply or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Sungrow Power Supply
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Sungrow Power Supply |
Sichuan Yahua and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Sungrow Power
The main advantage of trading using opposite Sichuan Yahua and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power's long position.| Sichuan Yahua vs. Zijin Mining Group | Sichuan Yahua vs. Wanhua Chemical Group | Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Rongsheng Petrochemical Co |
| Sungrow Power vs. Huafa Industrial Co | Sungrow Power vs. Hengdian Entertainment Co | Sungrow Power vs. Shuhua Sports Co | Sungrow Power vs. Sichuan Yahua Industrial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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