Correlation Between Industrial Securities and Sichuan Fulin
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By analyzing existing cross correlation between Industrial Securities Co and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Industrial Securities 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 Industrial Securities with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Securities and Sichuan Fulin.
Diversification Opportunities for Industrial Securities and Sichuan Fulin
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Sichuan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Securities 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 Industrial Securities 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 Industrial Securities 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 Industrial Securities i.e., Industrial Securities and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Industrial Securities and Sichuan Fulin
Assuming the 90 days trading horizon Industrial Securities is expected to generate 6.07 times less return on investment than Sichuan Fulin. But when comparing it to its historical volatility, Industrial Securities Co is 1.79 times less risky than Sichuan Fulin. It trades about 0.0 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Sichuan Fulin Transportation on January 25, 2025 and sell it today you would lose (64.00) from holding Sichuan Fulin Transportation or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Industrial Securities Co vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Industrial Securities |
| Sichuan Fulin Transp |
Industrial Securities and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Securities and Sichuan Fulin
The main advantage of trading using opposite Industrial Securities and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Securities 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.| Industrial Securities vs. China Life Insurance | Industrial Securities vs. Cinda Securities Co | Industrial Securities vs. Piotech Inc A | Industrial Securities vs. Dongxing Sec Co |
| Sichuan Fulin vs. Healthcare Co | Sichuan Fulin vs. Guangzhou Haige Communications | Sichuan Fulin vs. Jiangsu Yanghe Brewery | Sichuan Fulin vs. PKU HealthCare Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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