Correlation Between Zotye Automobile and Sihui Fuji
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By analyzing existing cross correlation between Zotye Automobile Co and Sihui Fuji Electronics, you can compare the effects of market volatilities on Zotye Automobile 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 Zotye Automobile with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Sihui Fuji.
Diversification Opportunities for Zotye Automobile and Sihui Fuji
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Sihui is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co 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 Zotye Automobile 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 Zotye Automobile Co 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 Zotye Automobile i.e., Zotye Automobile and Sihui Fuji go up and down completely randomly.
Pair Corralation between Zotye Automobile and Sihui Fuji
Assuming the 90 days trading horizon Zotye Automobile is expected to generate 1.19 times less return on investment than Sihui Fuji. In addition to that, Zotye Automobile is 2.38 times more volatile than Sihui Fuji Electronics. It trades about 0.1 of its total potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.27 per unit of volatility. If you would invest 2,556 in Sihui Fuji Electronics on September 25, 2024 and sell it today you would earn a total of 329.00 from holding Sihui Fuji Electronics or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zotye Automobile Co vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Zotye Automobile |
| Sihui Fuji Electronics |
Zotye Automobile and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Sihui Fuji
The main advantage of trading using opposite Zotye Automobile and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile 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.| Zotye Automobile vs. New China Life | Zotye Automobile vs. Ming Yang Smart | Zotye Automobile vs. 159681 | Zotye Automobile vs. 159005 |
| Sihui Fuji vs. Jointo Energy Investment | Sihui Fuji vs. Changchun UP Optotech | Sihui Fuji vs. Henan Shuanghui Investment | Sihui Fuji vs. Tieling Newcity 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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