Correlation Between Sichuan Fulin and Cabio Biotech
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Cabio Biotech Wuhan, you can compare the effects of market volatilities on Sichuan Fulin and Cabio Biotech 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 Fulin with a short position of Cabio Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Cabio Biotech.
Diversification Opportunities for Sichuan Fulin and Cabio Biotech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sichuan and Cabio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Cabio Biotech Wuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabio Biotech Wuhan and Sichuan Fulin 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 Fulin Transportation are associated (or correlated) with Cabio Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabio Biotech Wuhan has no effect on the direction of Sichuan Fulin i.e., Sichuan Fulin and Cabio Biotech go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Cabio Biotech
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 0.64 times more return on investment than Cabio Biotech. However, Sichuan Fulin Transportation is 1.57 times less risky than Cabio Biotech. It trades about 0.11 of its potential returns per unit of risk. Cabio Biotech Wuhan is currently generating about -0.01 per unit of risk. If you would invest 604.00 in Sichuan Fulin Transportation on October 25, 2024 and sell it today you would earn a total of 103.00 from holding Sichuan Fulin Transportation or generate 17.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sichuan Fulin Transportation vs. Cabio Biotech Wuhan
Performance |
Timeline |
Sichuan Fulin Transp |
Cabio Biotech Wuhan |
Sichuan Fulin and Cabio Biotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sichuan Fulin and Cabio Biotech
The main advantage of trading using opposite Sichuan Fulin and Cabio Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin position performs unexpectedly, Cabio Biotech 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 Cabio Biotech will offset losses from the drop in Cabio Biotech's long position.Sichuan Fulin vs. HeBei Jinniu Chemical | Sichuan Fulin vs. Lianhe Chemical Technology | Sichuan Fulin vs. Dazhong Transportation Group | Sichuan Fulin vs. Xiangtan Electrochemical Scientific |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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