Correlation Between Ningbo MedicalSystem and Sihui Fuji
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Sihui Fuji Electronics, you can compare the effects of market volatilities on Ningbo MedicalSystem 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 Ningbo MedicalSystem with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Sihui Fuji.
Diversification Opportunities for Ningbo MedicalSystem and Sihui Fuji
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Sihui is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno 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 Ningbo MedicalSystem 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 Ningbo MedicalSystem Biotechnology 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 Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Sihui Fuji go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Sihui Fuji
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to under-perform the Sihui Fuji. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo MedicalSystem Biotechnology is 1.52 times less risky than Sihui Fuji. The stock trades about -0.06 of its potential returns per unit of risk. The Sihui Fuji Electronics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,529 in Sihui Fuji Electronics on October 15, 2024 and sell it today you would earn a total of 211.00 from holding Sihui Fuji Electronics or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Sihui Fuji Electronics |
Ningbo MedicalSystem and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Sihui Fuji
The main advantage of trading using opposite Ningbo MedicalSystem and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem 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.| Ningbo MedicalSystem vs. Zoy Home Furnishing | Ningbo MedicalSystem vs. Postal Savings Bank | Ningbo MedicalSystem vs. Shanghai Material Trading | Ningbo MedicalSystem vs. Arrow Home Group |
| Sihui Fuji vs. Chahua Modern Housewares | Sihui Fuji vs. Kontour Medical Technology | Sihui Fuji vs. Yindu Kitchen Equipment | Sihui Fuji vs. Cowealth Medical China |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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