Correlation Between ShuYu Civilian and Sichuan Qiaoyuan

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Can any of the company-specific risk be diversified away by investing in both ShuYu Civilian and Sichuan Qiaoyuan at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ShuYu Civilian and Sichuan Qiaoyuan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ShuYu Civilian Pharmacy and Sichuan Qiaoyuan Gas, you can compare the effects of market volatilities on ShuYu Civilian and Sichuan Qiaoyuan 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 ShuYu Civilian with a short position of Sichuan Qiaoyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of ShuYu Civilian and Sichuan Qiaoyuan.

Diversification Opportunities for ShuYu Civilian and Sichuan Qiaoyuan

ShuYuSichuanDiversified AwayShuYuSichuanDiversified Away100%
-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between ShuYu and Sichuan is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ShuYu Civilian Pharmacy and Sichuan Qiaoyuan Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Qiaoyuan Gas and ShuYu Civilian 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 ShuYu Civilian Pharmacy are associated (or correlated) with Sichuan Qiaoyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Qiaoyuan Gas has no effect on the direction of ShuYu Civilian i.e., ShuYu Civilian and Sichuan Qiaoyuan go up and down completely randomly.

Pair Corralation between ShuYu Civilian and Sichuan Qiaoyuan

Assuming the 90 days trading horizon ShuYu Civilian Pharmacy is expected to generate 0.83 times more return on investment than Sichuan Qiaoyuan. However, ShuYu Civilian Pharmacy is 1.2 times less risky than Sichuan Qiaoyuan. It trades about 0.0 of its potential returns per unit of risk. Sichuan Qiaoyuan Gas is currently generating about -0.07 per unit of risk. If you would invest  1,119  in ShuYu Civilian Pharmacy on November 4, 2024 and sell it today you would lose (5.00) from holding ShuYu Civilian Pharmacy or give up 0.45% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ShuYu Civilian Pharmacy  vs.  Sichuan Qiaoyuan Gas

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -100102030
JavaScript chart by amCharts 3.21.15301017 301286
       Timeline  
ShuYu Civilian Pharmacy 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ShuYu Civilian Pharmacy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanJanFeb1112131415161718
Sichuan Qiaoyuan Gas 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Sichuan Qiaoyuan Gas are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Sichuan Qiaoyuan may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanJanFeb3032343638

ShuYu Civilian and Sichuan Qiaoyuan Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.9-5.17-3.43-1.70.01.653.375.086.798.5 0.0200.0250.0300.0350.0400.045
JavaScript chart by amCharts 3.21.15301017 301286
       Returns  

Pair Trading with ShuYu Civilian and Sichuan Qiaoyuan

The main advantage of trading using opposite ShuYu Civilian and Sichuan Qiaoyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ShuYu Civilian position performs unexpectedly, Sichuan Qiaoyuan 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 Qiaoyuan will offset losses from the drop in Sichuan Qiaoyuan's long position.
The idea behind ShuYu Civilian Pharmacy and Sichuan Qiaoyuan Gas pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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