Correlation Between Guangzhou Jointas and Sichuan Fulin
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Guangzhou Jointas and Sichuan Fulin 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 Guangzhou Jointas with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Sichuan Fulin.
Diversification Opportunities for Guangzhou Jointas and Sichuan Fulin
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Sichuan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp and Guangzhou Jointas 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 Guangzhou Jointas Chemical are associated (or correlated) with Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Sichuan Fulin
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the Sichuan Fulin. In addition to that, Guangzhou Jointas is 1.17 times more volatile than Sichuan Fulin Transportation. It trades about -0.14 of its total potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.08 per unit of volatility. If you would invest 696.00 in Sichuan Fulin Transportation on September 27, 2024 and sell it today you would earn a total of 30.00 from holding Sichuan Fulin Transportation or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Guangzhou Jointas |
| Sichuan Fulin Transp |
Guangzhou Jointas and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Sichuan Fulin
The main advantage of trading using opposite Guangzhou Jointas and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas vs. Rongsheng Petrochemical Co |
| Sichuan Fulin vs. Kweichow Moutai Co | Sichuan Fulin vs. Shenzhen Mindray Bio Medical | Sichuan Fulin vs. Jiangsu Pacific Quartz | Sichuan Fulin vs. G bits Network 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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