Correlation Between Northern United and Sichuan Fulin
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By analyzing existing cross correlation between Northern United Publishing and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Sichuan Fulin.
Diversification Opportunities for Northern United and Sichuan Fulin
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Northern and Sichuan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing 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 Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Northern United and Sichuan Fulin
Assuming the 90 days trading horizon Northern United Publishing is expected to under-perform the Sichuan Fulin. But the stock apears to be less risky and, when comparing its historical volatility, Northern United Publishing is 1.07 times less risky than Sichuan Fulin. The stock trades about 0.0 of its potential returns per unit of risk. The Sichuan Fulin Transportation is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 710.00 in Sichuan Fulin Transportation on October 29, 2024 and sell it today you would earn a total of 7.00 from holding Sichuan Fulin Transportation or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Northern United Publ |
| Sichuan Fulin Transp |
Northern United and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Sichuan Fulin
The main advantage of trading using opposite Northern United and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. Jahen Household Products | Northern United vs. Olympic Circuit Technology | Northern United vs. Guangzhou Seagull Kitchen | Northern United vs. Jiujiang Shanshui Technology |
| Sichuan Fulin vs. Aluminum Corp of | Sichuan Fulin vs. Beijing Kingsoft Office | Sichuan Fulin vs. Shandong Hongchuang Aluminum | Sichuan Fulin vs. Nanjing Putian Telecommunications |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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