Correlation Between Weihai Honglin and Sihui Fuji
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By analyzing existing cross correlation between Weihai Honglin Electronic and Sihui Fuji Electronics, you can compare the effects of market volatilities on Weihai Honglin and Sihui Fuji 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 Weihai Honglin with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Sihui Fuji.
Diversification Opportunities for Weihai Honglin and Sihui Fuji
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Weihai and Sihui is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Sihui Fuji Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sihui Fuji Electronics and Weihai Honglin 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 Weihai Honglin Electronic are associated (or correlated) with Sihui Fuji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sihui Fuji Electronics has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Sihui Fuji go up and down completely randomly.
Pair Corralation between Weihai Honglin and Sihui Fuji
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.24 times more return on investment than Sihui Fuji. However, Weihai Honglin is 1.24 times more volatile than Sihui Fuji Electronics. It trades about 0.2 of its potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.24 per unit of risk. If you would invest 1,375 in Weihai Honglin Electronic on November 1, 2024 and sell it today you would earn a total of 232.00 from holding Weihai Honglin Electronic or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Sihui Fuji Electronics |
Weihai Honglin and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Sihui Fuji
The main advantage of trading using opposite Weihai Honglin and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Sihui Fuji 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 Sihui Fuji will offset losses from the drop in Sihui Fuji's long position.| Weihai Honglin vs. Eyebright Medical Technology | Weihai Honglin vs. Guangzhou KingTeller Technology | Weihai Honglin vs. Tianjin Ruixin Technology | Weihai Honglin vs. Innovative Medical Management |
| Sihui Fuji vs. Nanjing Putian Telecommunications | Sihui Fuji vs. Guangdong Transtek Medical | Sihui Fuji vs. TianJin 712 Communication | Sihui Fuji vs. Quectel Wireless Solutions |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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