Correlation Between Sihui Fuji and Shanghai Material
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By analyzing existing cross correlation between Sihui Fuji Electronics and Shanghai Material Trading, you can compare the effects of market volatilities on Sihui Fuji and Shanghai Material 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 Shanghai Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sihui Fuji and Shanghai Material.
Diversification Opportunities for Sihui Fuji and Shanghai Material
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sihui and Shanghai is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sihui Fuji Electronics and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Shanghai Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Sihui Fuji i.e., Sihui Fuji and Shanghai Material go up and down completely randomly.
Pair Corralation between Sihui Fuji and Shanghai Material
Assuming the 90 days trading horizon Sihui Fuji Electronics is expected to generate 1.07 times more return on investment than Shanghai Material. However, Sihui Fuji is 1.07 times more volatile than Shanghai Material Trading. It trades about 0.09 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about 0.03 per unit of risk. If you would invest 1,649 in Sihui Fuji Electronics on November 3, 2024 and sell it today you would earn a total of 1,436 from holding Sihui Fuji Electronics or generate 87.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sihui Fuji Electronics vs. Shanghai Material Trading
Performance |
| Timeline |
| Sihui Fuji Electronics |
| Shanghai Material Trading |
Sihui Fuji and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sihui Fuji and Shanghai Material
The main advantage of trading using opposite Sihui Fuji and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sihui Fuji position performs unexpectedly, Shanghai Material 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 Shanghai Material will offset losses from the drop in Shanghai Material's long position.| Sihui Fuji vs. Guangzhou KingTeller Technology | Sihui Fuji vs. Eyebright Medical Technology | Sihui Fuji vs. Ningbo Fangzheng Automobile | Sihui Fuji vs. Iat Automobile Technology |
| Shanghai Material vs. Youyou Foods Co | Shanghai Material vs. XinJiang GuoTong Pipeline | Shanghai Material vs. Beijing Kaiwen Education | Shanghai Material vs. Shanghai Ziyan Foods |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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