Correlation Between Jiaozuo Wanfang and Sihui Fuji
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Sihui Fuji Electronics, you can compare the effects of market volatilities on Jiaozuo Wanfang and Sihui Fuji 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 Jiaozuo Wanfang with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Sihui Fuji.
Diversification Opportunities for Jiaozuo Wanfang and Sihui Fuji
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiaozuo and Sihui is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Sihui Fuji Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sihui Fuji Electronics and Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum are associated (or correlated) with Sihui Fuji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sihui Fuji Electronics has no effect on the direction of Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Sihui Fuji go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Sihui Fuji
Assuming the 90 days trading horizon Jiaozuo Wanfang is expected to generate 8.08 times less return on investment than Sihui Fuji. But when comparing it to its historical volatility, Jiaozuo Wanfang Aluminum is 1.92 times less risky than Sihui Fuji. It trades about 0.09 of its potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 2,455 in Sihui Fuji Electronics on November 7, 2024 and sell it today you would earn a total of 630.00 from holding Sihui Fuji Electronics or generate 25.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sihui Fuji Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Jiaozuo Wanfang and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Sihui Fuji
The main advantage of trading using opposite Jiaozuo Wanfang and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang position performs unexpectedly, Sihui Fuji 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 Sihui Fuji will offset losses from the drop in Sihui Fuji's long position.The idea behind Jiaozuo Wanfang Aluminum and Sihui Fuji Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |