Correlation Between Sihui Fuji and Chahua Modern
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By analyzing existing cross correlation between Sihui Fuji Electronics and Chahua Modern Housewares, you can compare the effects of market volatilities on Sihui Fuji and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sihui Fuji and Chahua Modern.
Diversification Opportunities for Sihui Fuji and Chahua Modern
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sihui and Chahua is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sihui Fuji Electronics and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Sihui Fuji i.e., Sihui Fuji and Chahua Modern go up and down completely randomly.
Pair Corralation between Sihui Fuji and Chahua Modern
Assuming the 90 days trading horizon Sihui Fuji Electronics is expected to generate 0.99 times more return on investment than Chahua Modern. However, Sihui Fuji Electronics is 1.01 times less risky than Chahua Modern. It trades about -0.01 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about -0.08 per unit of risk. If you would invest 2,760 in Sihui Fuji Electronics on October 16, 2024 and sell it today you would lose (65.00) from holding Sihui Fuji Electronics or give up 2.36% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Sihui Fuji Electronics |
| Chahua Modern Housewares |
Sihui Fuji and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sihui Fuji and Chahua Modern
The main advantage of trading using opposite Sihui Fuji and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sihui Fuji position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Sihui Fuji vs. Chahua Modern Housewares | Sihui Fuji vs. Kontour Medical Technology | Sihui Fuji vs. Yindu Kitchen Equipment | Sihui Fuji vs. Cowealth Medical China |
| Chahua Modern vs. Guilin Seamild Foods | Chahua Modern vs. Youyou Foods Co | Chahua Modern vs. Eastroc Beverage Group | Chahua Modern vs. Anji Foodstuff Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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