Correlation Between China Construction and Sichuan Fulin
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By analyzing existing cross correlation between China Construction Bank and Sichuan Fulin Transportation, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Sichuan Fulin.
Diversification Opportunities for China Construction and Sichuan Fulin
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Sichuan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank 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 China Construction 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 China Construction Bank 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 China Construction i.e., China Construction and Sichuan Fulin go up and down completely randomly.
Pair Corralation between China Construction and Sichuan Fulin
Assuming the 90 days trading horizon China Construction Bank is expected to under-perform the Sichuan Fulin. But the stock apears to be less risky and, when comparing its historical volatility, China Construction Bank is 1.64 times less risky than Sichuan Fulin. The stock trades about -0.13 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 724.00 in Sichuan Fulin Transportation on October 28, 2024 and sell it today you would lose (7.00) from holding Sichuan Fulin Transportation or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| China Construction Bank |
| Sichuan Fulin Transp |
China Construction and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Sichuan Fulin
The main advantage of trading using opposite China Construction and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Youyou Foods Co | China Construction vs. Shenzhen AV Display Co | China Construction vs. Sportsoul Co Ltd | China Construction vs. HaiXin Foods Co |
| Sichuan Fulin vs. Yueyang Xingchang Petro Chemical | Sichuan Fulin vs. Xilong Chemical Co | Sichuan Fulin vs. Guangzhou Jointas Chemical | Sichuan Fulin vs. Eastroc Beverage Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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