Correlation Between Changchun and Sihui Fuji
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By analyzing existing cross correlation between Changchun UP Optotech and Sihui Fuji Electronics, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Sihui Fuji.
Diversification Opportunities for Changchun and Sihui Fuji
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Sihui is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech 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 Changchun 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 Changchun UP Optotech 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 Changchun i.e., Changchun and Sihui Fuji go up and down completely randomly.
Pair Corralation between Changchun and Sihui Fuji
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 1.06 times more return on investment than Sihui Fuji. However, Changchun is 1.06 times more volatile than Sihui Fuji Electronics. It trades about 0.02 of its potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.02 per unit of risk. If you would invest 3,763 in Changchun UP Optotech on September 26, 2024 and sell it today you would earn a total of 218.00 from holding Changchun UP Optotech or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Changchun UP Optotech |
| Sihui Fuji Electronics |
Changchun and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Sihui Fuji
The main advantage of trading using opposite Changchun and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. Cultural Investment Holdings | Changchun vs. Gome Telecom Equipment | Changchun vs. Bus Online Co | Changchun vs. Holitech Technology Co |
| 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 Valuation module to check real value of public entities based on technical and fundamental data.
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