Correlation Between Sihui Fuji and Chongqing Changan
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By analyzing existing cross correlation between Sihui Fuji Electronics and Chongqing Changan Automobile, you can compare the effects of market volatilities on Sihui Fuji and Chongqing Changan 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 Sihui Fuji with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sihui Fuji and Chongqing Changan.
Diversification Opportunities for Sihui Fuji and Chongqing Changan
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sihui and Chongqing is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sihui Fuji Electronics and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Sihui Fuji 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 Sihui Fuji Electronics are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Sihui Fuji i.e., Sihui Fuji and Chongqing Changan go up and down completely randomly.
Pair Corralation between Sihui Fuji and Chongqing Changan
Assuming the 90 days trading horizon Sihui Fuji Electronics is expected to generate 3.16 times more return on investment than Chongqing Changan. However, Sihui Fuji is 3.16 times more volatile than Chongqing Changan Automobile. It trades about 0.02 of its potential returns per unit of risk. Chongqing Changan Automobile is currently generating about -0.52 per unit of risk. If you would invest 2,742 in Sihui Fuji Electronics on October 14, 2024 and sell it today you would lose (2.00) from holding Sihui Fuji Electronics or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sihui Fuji Electronics vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Sihui Fuji Electronics |
| Chongqing Changan |
Sihui Fuji and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sihui Fuji and Chongqing Changan
The main advantage of trading using opposite Sihui Fuji and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sihui Fuji position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.| Sihui Fuji vs. De Rucci Healthy | Sihui Fuji vs. Everjoy Health Group | Sihui Fuji vs. Chengdu Spaceon Electronics | Sihui Fuji vs. Impulse Qingdao Health |
| Chongqing Changan vs. Hua Xia Bank | Chongqing Changan vs. Shaanxi Meineng Clean | Chongqing Changan vs. GRG Banking Equipment | Chongqing Changan vs. Sihui Fuji Electronics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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