Correlation Between Sinomach Automobile and Sichuan Fulin
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By analyzing existing cross correlation between Sinomach Automobile Co and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Sichuan Fulin.
Diversification Opportunities for Sinomach Automobile and Sichuan Fulin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Sichuan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co 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 Sinomach Automobile 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 Sinomach Automobile Co 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 Sinomach Automobile i.e., Sinomach Automobile and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Sichuan Fulin
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Sichuan Fulin. In addition to that, Sinomach Automobile is 1.06 times more volatile than Sichuan Fulin Transportation. It trades about 0.0 of its total potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.02 per unit of volatility. If you would invest 631.00 in Sichuan Fulin Transportation on August 29, 2024 and sell it today you would earn a total of 65.00 from holding Sichuan Fulin Transportation or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Sinomach Automobile |
| Sichuan Fulin Transp |
Sinomach Automobile and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Sichuan Fulin
The main advantage of trading using opposite Sinomach Automobile and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
| Sichuan Fulin vs. Cambricon Technologies Corp | Sichuan Fulin vs. Loongson Technology Corp | Sichuan Fulin vs. Chongqing Road Bridge | Sichuan Fulin vs. Shenzhen Fortune Trend |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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