Correlation Between Sihui Fuji and Healthcare
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By analyzing existing cross correlation between Sihui Fuji Electronics and Healthcare Co, you can compare the effects of market volatilities on Sihui Fuji and Healthcare 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 Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sihui Fuji and Healthcare.
Diversification Opportunities for Sihui Fuji and Healthcare
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sihui and Healthcare is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sihui Fuji Electronics and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare 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 Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Sihui Fuji i.e., Sihui Fuji and Healthcare go up and down completely randomly.
Pair Corralation between Sihui Fuji and Healthcare
Assuming the 90 days trading horizon Sihui Fuji Electronics is expected to generate 0.81 times more return on investment than Healthcare. However, Sihui Fuji Electronics is 1.24 times less risky than Healthcare. It trades about 0.22 of its potential returns per unit of risk. Healthcare Co is currently generating about -0.01 per unit of risk. If you would invest 2,545 in Sihui Fuji Electronics on September 27, 2024 and sell it today you would earn a total of 269.00 from holding Sihui Fuji Electronics or generate 10.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sihui Fuji Electronics vs. Healthcare Co
Performance |
| Timeline |
| Sihui Fuji Electronics |
| Healthcare |
Sihui Fuji and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sihui Fuji and Healthcare
The main advantage of trading using opposite Sihui Fuji and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sihui Fuji position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare's long position.| Sihui Fuji vs. Anhui Jianghuai Automobile | Sihui Fuji vs. Ningbo MedicalSystem Biotechnology | Sihui Fuji vs. Yili Chuanning Biotechnology | Sihui Fuji vs. Wintao Communications Co |
| Healthcare vs. Sihui Fuji Electronics | Healthcare vs. Longjian Road Bridge | Healthcare vs. Zhengping RoadBridge Constr | Healthcare vs. Zhongshan Broad Ocean Motor |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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