Correlation Between Nanxing Furniture and Sihui Fuji
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Sihui Fuji Electronics, you can compare the effects of market volatilities on Nanxing Furniture 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 Nanxing Furniture with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Sihui Fuji.
Diversification Opportunities for Nanxing Furniture and Sihui Fuji
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nanxing and Sihui is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery 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 Nanxing Furniture 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 Nanxing Furniture Machinery 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 Nanxing Furniture i.e., Nanxing Furniture and Sihui Fuji go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Sihui Fuji
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to under-perform the Sihui Fuji. But the stock apears to be less risky and, when comparing its historical volatility, Nanxing Furniture Machinery is 1.18 times less risky than Sihui Fuji. The stock trades about -0.17 of its potential returns per unit of risk. The Sihui Fuji Electronics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,789 in Sihui Fuji Electronics on October 13, 2024 and sell it today you would lose (49.00) from holding Sihui Fuji Electronics or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Nanxing Furniture |
| Sihui Fuji Electronics |
Nanxing Furniture and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Sihui Fuji
The main advantage of trading using opposite Nanxing Furniture and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture 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.| Nanxing Furniture vs. Runjian Communication Co | Nanxing Furniture vs. Allwin Telecommunication Co | Nanxing Furniture vs. Fibocom Wireless | Nanxing Furniture vs. Jason Furniture |
| Sihui Fuji vs. De Rucci Healthy | Sihui Fuji vs. Everjoy Health Group | Sihui Fuji vs. Chengdu Spaceon Electronics | Sihui Fuji vs. Impulse Qingdao Health |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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