Correlation Between Sihui Fuji and Ningbo Kangqiang
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By analyzing existing cross correlation between Sihui Fuji Electronics and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Sihui Fuji and Ningbo Kangqiang 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 Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sihui Fuji and Ningbo Kangqiang.
Diversification Opportunities for Sihui Fuji and Ningbo Kangqiang
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sihui and Ningbo is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sihui Fuji Electronics and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele 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 Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Sihui Fuji i.e., Sihui Fuji and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Sihui Fuji and Ningbo Kangqiang
Assuming the 90 days trading horizon Sihui Fuji Electronics is expected to generate 0.74 times more return on investment than Ningbo Kangqiang. However, Sihui Fuji Electronics is 1.36 times less risky than Ningbo Kangqiang. It trades about 0.24 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.13 per unit of risk. If you would invest 2,622 in Sihui Fuji Electronics on November 1, 2024 and sell it today you would earn a total of 463.00 from holding Sihui Fuji Electronics or generate 17.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sihui Fuji Electronics vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Sihui Fuji Electronics |
| Ningbo Kangqiang Ele |
Sihui Fuji and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sihui Fuji and Ningbo Kangqiang
The main advantage of trading using opposite Sihui Fuji and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sihui Fuji position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Sihui Fuji vs. Nanjing Putian Telecommunications | Sihui Fuji vs. Guangdong Transtek Medical | Sihui Fuji vs. TianJin 712 Communication | Sihui Fuji vs. Quectel Wireless Solutions |
| Ningbo Kangqiang vs. Cloud Live Technology | Ningbo Kangqiang vs. Nanjing Putian Telecommunications | Ningbo Kangqiang vs. Shenzhen Coship Electronics | Ningbo Kangqiang vs. Shenzhen Hifuture Electric |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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