Correlation Between Sichuan Hebang and FSPG Hi
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and FSPG Hi Tech Co, you can compare the effects of market volatilities on Sichuan Hebang and FSPG Hi 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 Sichuan Hebang with a short position of FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and FSPG Hi.
Diversification Opportunities for Sichuan Hebang and FSPG Hi
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sichuan and FSPG is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech and Sichuan Hebang 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 Sichuan Hebang Biotechnology are associated (or correlated) with FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Sichuan Hebang i.e., Sichuan Hebang and FSPG Hi go up and down completely randomly.
Pair Corralation between Sichuan Hebang and FSPG Hi
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to under-perform the FSPG Hi. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Hebang Biotechnology is 1.44 times less risky than FSPG Hi. The stock trades about -0.05 of its potential returns per unit of risk. The FSPG Hi Tech Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 460.00 in FSPG Hi Tech Co on October 14, 2024 and sell it today you would earn a total of 103.00 from holding FSPG Hi Tech Co or generate 22.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Sichuan Hebang Biote |
| FSPG Hi Tech |
Sichuan Hebang and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and FSPG Hi
The main advantage of trading using opposite Sichuan Hebang and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.| Sichuan Hebang vs. Namchow Food Group | Sichuan Hebang vs. Fiberhome Telecommunication Technologies | Sichuan Hebang vs. V V Food | Sichuan Hebang vs. Xinjiang Tianrun Dairy |
| FSPG Hi vs. Sichuan Hebang Biotechnology | FSPG Hi vs. Digiwin Software Co | FSPG Hi vs. Dareway Software Co | FSPG Hi vs. Bloomage Biotechnology 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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