Correlation Between Sichuan Hebang and Porton Fine
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Porton Fine Chemicals, you can compare the effects of market volatilities on Sichuan Hebang and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Porton Fine.
Diversification Opportunities for Sichuan Hebang and Porton Fine
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Porton is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of Sichuan Hebang i.e., Sichuan Hebang and Porton Fine go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Porton Fine
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to generate 0.81 times more return on investment than Porton Fine. However, Sichuan Hebang Biotechnology is 1.24 times less risky than Porton Fine. It trades about -0.06 of its potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.07 per unit of risk. If you would invest 204.00 in Sichuan Hebang Biotechnology on October 30, 2024 and sell it today you would lose (14.00) from holding Sichuan Hebang Biotechnology or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Porton Fine Chemicals
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Porton Fine Chemicals |
Sichuan Hebang and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Porton Fine
The main advantage of trading using opposite Sichuan Hebang and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| Sichuan Hebang vs. Xiangtan Electrochemical Scientific | Sichuan Hebang vs. Liaoning Dingjide Petrochemical | Sichuan Hebang vs. Hengli Petrochemical Co | Sichuan Hebang vs. Jilin Jlu Communication |
| Porton Fine vs. Ming Yang Smart | Porton Fine vs. 159681 | Porton Fine vs. 159005 | Porton Fine vs. Loctek Ergonomic Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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