Correlation Between Sichuan Furong and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Sichuan Furong Technology and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Sichuan Furong and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Furong and HUAQIN TECHNOLOGY.
Diversification Opportunities for Sichuan Furong and HUAQIN TECHNOLOGY
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and HUAQIN is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Furong Technology and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Sichuan Furong i.e., Sichuan Furong and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Sichuan Furong and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Sichuan Furong Technology is expected to under-perform the HUAQIN TECHNOLOGY. In addition to that, Sichuan Furong is 1.01 times more volatile than HUAQIN TECHNOLOGY LTD. It trades about -0.07 of its total potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.12 per unit of volatility. If you would invest 6,069 in HUAQIN TECHNOLOGY LTD on September 26, 2024 and sell it today you would earn a total of 338.00 from holding HUAQIN TECHNOLOGY LTD or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Furong Technology vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Sichuan Furong Technology |
| HUAQIN TECHNOLOGY LTD |
Sichuan Furong and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Furong and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Sichuan Furong and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Furong position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| Sichuan Furong vs. Bank of China | Sichuan Furong vs. Kweichow Moutai Co | Sichuan Furong vs. PetroChina Co Ltd | Sichuan Furong vs. Bank of Communications |
| HUAQIN TECHNOLOGY vs. Anker Innovations Technology | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Hangzhou EZVIZ Network | HUAQIN TECHNOLOGY vs. Sichuan Furong 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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