Correlation Between Xiamen Goldenhome and Sichuan Fulin
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Sichuan Fulin.
Diversification Opportunities for Xiamen Goldenhome and Sichuan Fulin
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xiamen and Sichuan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co 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 Xiamen Goldenhome 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 Xiamen Goldenhome Co 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Sichuan Fulin
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Sichuan Fulin. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Goldenhome Co is 1.85 times less risky than Sichuan Fulin. The stock trades about -0.14 of its potential returns per unit of risk. The Sichuan Fulin Transportation is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 744.00 in Sichuan Fulin Transportation on December 1, 2024 and sell it today you would earn a total of 199.00 from holding Sichuan Fulin Transportation or generate 26.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Xiamen Goldenhome |
| Sichuan Fulin Transp |
Xiamen Goldenhome and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Sichuan Fulin
The main advantage of trading using opposite Xiamen Goldenhome and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Queclink Wireless Solutions | Xiamen Goldenhome vs. Xinjiang Tianrun Dairy | Xiamen Goldenhome vs. New Hope Dairy | Xiamen Goldenhome vs. Jilin Jlu Communication |
| Sichuan Fulin vs. Zotye Automobile Co | Sichuan Fulin vs. Tongyu Communication | Sichuan Fulin vs. Eastern Communications Co | Sichuan Fulin vs. Jilin Jlu Communication |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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