Correlation Between Sichuan Furong and Shenzhen Centralcon
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By analyzing existing cross correlation between Sichuan Furong Technology and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Sichuan Furong and Shenzhen Centralcon 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 Furong with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Furong and Shenzhen Centralcon.
Diversification Opportunities for Sichuan Furong and Shenzhen Centralcon
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Shenzhen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Furong Technology and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Sichuan Furong 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 Furong Technology are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Sichuan Furong i.e., Sichuan Furong and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Sichuan Furong and Shenzhen Centralcon
Assuming the 90 days trading horizon Sichuan Furong Technology is expected to generate 14.74 times more return on investment than Shenzhen Centralcon. However, Sichuan Furong is 14.74 times more volatile than Shenzhen Centralcon Investment. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.03 per unit of risk. If you would invest 1,202 in Sichuan Furong Technology on October 16, 2024 and sell it today you would lose (70.00) from holding Sichuan Furong Technology or give up 5.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Furong Technology vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Sichuan Furong Technology |
| Shenzhen Centralcon |
Sichuan Furong and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Furong and Shenzhen Centralcon
The main advantage of trading using opposite Sichuan Furong and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Furong position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Sichuan Furong vs. Zhejiang Yongjin Metal | Sichuan Furong vs. Cultural Investment Holdings | Sichuan Furong vs. Zhongrun Resources Investment | Sichuan Furong vs. Heilongjiang Transport Development |
| Shenzhen Centralcon vs. Hunan Investment Group | Shenzhen Centralcon vs. Duzhe Publishing Media | Shenzhen Centralcon vs. Shuhua Sports Co | Shenzhen Centralcon vs. Anhui Xinhua Media |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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