Correlation Between Fushun Special and Sinosteel Engineering
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By analyzing existing cross correlation between Fushun Special Steel and Sinosteel Engineering and, you can compare the effects of market volatilities on Fushun Special and Sinosteel Engineering 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 Fushun Special with a short position of Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fushun Special and Sinosteel Engineering.
Diversification Opportunities for Fushun Special and Sinosteel Engineering
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fushun and Sinosteel is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fushun Special Steel and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and and Fushun Special 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 Fushun Special Steel are associated (or correlated) with Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Fushun Special i.e., Fushun Special and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Fushun Special and Sinosteel Engineering
Assuming the 90 days trading horizon Fushun Special Steel is expected to under-perform the Sinosteel Engineering. In addition to that, Fushun Special is 1.12 times more volatile than Sinosteel Engineering and. It trades about -0.27 of its total potential returns per unit of risk. Sinosteel Engineering and is currently generating about 0.1 per unit of volatility. If you would invest 656.00 in Sinosteel Engineering and on August 29, 2024 and sell it today you would earn a total of 28.00 from holding Sinosteel Engineering and or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fushun Special Steel vs. Sinosteel Engineering and
Performance |
| Timeline |
| Fushun Special Steel |
| Sinosteel Engineering and |
Fushun Special and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fushun Special and Sinosteel Engineering
The main advantage of trading using opposite Fushun Special and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fushun Special position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| Fushun Special vs. Gan Yuan Foods | Fushun Special vs. Yili Chuanning Biotechnology | Fushun Special vs. Namchow Food Group | Fushun Special vs. Wuhan Hvsen Biotechnology |
| Sinosteel Engineering vs. Ming Yang Smart | Sinosteel Engineering vs. 159681 | Sinosteel Engineering vs. 159005 | Sinosteel Engineering vs. Loctek Ergonomic 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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