Correlation Between Hang Xiao and Sichuan Fulin
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By analyzing existing cross correlation between Hang Xiao Steel and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Hang Xiao 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 Hang Xiao with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Sichuan Fulin.
Diversification Opportunities for Hang Xiao and Sichuan Fulin
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hang and Sichuan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel 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 Hang Xiao 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 Hang Xiao Steel 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 Hang Xiao i.e., Hang Xiao and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Hang Xiao and Sichuan Fulin
Assuming the 90 days trading horizon Hang Xiao Steel is expected to under-perform the Sichuan Fulin. But the stock apears to be less risky and, when comparing its historical volatility, Hang Xiao Steel is 1.46 times less risky than Sichuan Fulin. The stock trades about -0.01 of its potential returns per unit of risk. The Sichuan Fulin Transportation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 755.00 in Sichuan Fulin Transportation on September 4, 2024 and sell it today you would lose (23.00) from holding Sichuan Fulin Transportation or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hang Xiao Steel vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Hang Xiao Steel |
| Sichuan Fulin Transp |
Hang Xiao and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Sichuan Fulin
The main advantage of trading using opposite Hang Xiao and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao 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.| Hang Xiao vs. Sichuan Fulin Transportation | Hang Xiao vs. Miracll Chemicals Co | Hang Xiao vs. Huaxia Fund Management | Hang Xiao vs. Shaanxi Meineng Clean |
| Sichuan Fulin vs. Kweichow Moutai Co | Sichuan Fulin vs. NAURA Technology Group | Sichuan Fulin vs. Zhejiang Orient Gene | Sichuan Fulin vs. APT Medical |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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