Correlation Between Industrial and Sichuan Fulin
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By analyzing existing cross correlation between Industrial and Commercial and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Industrial 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 with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Sichuan Fulin.
Diversification Opportunities for Industrial 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 and Commercial 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 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 and Commercial 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 i.e., Industrial and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Industrial and Sichuan Fulin
Assuming the 90 days trading horizon Industrial is expected to generate 7.05 times less return on investment than Sichuan Fulin. But when comparing it to its historical volatility, Industrial and Commercial is 2.47 times less risky than Sichuan Fulin. It trades about 0.07 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 627.00 in Sichuan Fulin Transportation on August 29, 2024 and sell it today you would earn a total of 69.00 from holding Sichuan Fulin Transportation or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Industrial and Commercial |
| Sichuan Fulin Transp |
Industrial and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Sichuan Fulin
The main advantage of trading using opposite Industrial and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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 vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software Co |
| Sichuan Fulin vs. PetroChina Co Ltd | Sichuan Fulin vs. China State Construction | Sichuan Fulin vs. China Mobile Limited | Sichuan Fulin vs. Industrial and Commercial |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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