Correlation Between Sino Medical and Sichuan Fulin
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By analyzing existing cross correlation between Sino Medical Sciences and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Sino Medical 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 Sino Medical with a short position of Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Medical and Sichuan Fulin.
Diversification Opportunities for Sino Medical and Sichuan Fulin
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Sichuan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sino Medical Sciences 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 Sino Medical 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 Sino Medical Sciences 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 Sino Medical i.e., Sino Medical and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Sino Medical and Sichuan Fulin
Assuming the 90 days trading horizon Sino Medical Sciences is expected to under-perform the Sichuan Fulin. In addition to that, Sino Medical is 1.45 times more volatile than Sichuan Fulin Transportation. It trades about -0.06 of its total potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.32 per unit of volatility. If you would invest 667.00 in Sichuan Fulin Transportation on September 13, 2024 and sell it today you would earn a total of 111.00 from holding Sichuan Fulin Transportation or generate 16.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Medical Sciences vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Sino Medical Sciences |
| Sichuan Fulin Transp |
Sino Medical and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Medical and Sichuan Fulin
The main advantage of trading using opposite Sino Medical and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Medical 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.| Sino Medical vs. Industrial and Commercial | Sino Medical vs. Kweichow Moutai Co | Sino Medical vs. Agricultural Bank of | Sino Medical vs. China Mobile Limited |
| Sichuan Fulin vs. Ming Yang Smart | Sichuan Fulin vs. 159681 | Sichuan Fulin vs. 159005 | Sichuan Fulin 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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