Correlation Between Bank of Communications and Sichuan Fulin
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By analyzing existing cross correlation between Bank of Communications and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Sichuan Fulin.
Diversification Opportunities for Bank of Communications and Sichuan Fulin
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Sichuan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications 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 Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Bank of Communications and Sichuan Fulin
Assuming the 90 days trading horizon Bank of Communications is expected to under-perform the Sichuan Fulin. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Communications is 1.63 times less risky than Sichuan Fulin. The stock trades about -0.22 of its potential returns per unit of risk. The Sichuan Fulin Transportation is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 705.00 in Sichuan Fulin Transportation on November 1, 2024 and sell it today you would earn a total of 27.00 from holding Sichuan Fulin Transportation or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Bank of Communications |
| Sichuan Fulin Transp |
Bank of Communications and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Sichuan Fulin
The main advantage of trading using opposite Bank of Communications and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Shuhua Sports Co | Bank of Communications vs. Zhongshan Public Utilities | Bank of Communications vs. Chengdu B ray Media | Bank of Communications vs. Beijing Enlight Media |
| Sichuan Fulin vs. Wuhan Yangtze Communication | Sichuan Fulin vs. Beijing Bewinner Communications | Sichuan Fulin vs. Jilin Jlu Communication | Sichuan Fulin vs. Bank of Communications |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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