Correlation Between China Asset and Sihui Fuji
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By analyzing existing cross correlation between China Asset Management and Sihui Fuji Electronics, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Sihui Fuji.
Diversification Opportunities for China Asset and Sihui Fuji
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Sihui is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Sihui Fuji go up and down completely randomly.
Pair Corralation between China Asset and Sihui Fuji
Assuming the 90 days trading horizon China Asset is expected to generate 1.71 times less return on investment than Sihui Fuji. But when comparing it to its historical volatility, China Asset Management is 3.67 times less risky than Sihui Fuji. It trades about 0.2 of its potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.09 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Sihui Fuji Electronics
Performance |
| Timeline |
| China Asset Management |
| Sihui Fuji Electronics |
China Asset and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Sihui Fuji
The main advantage of trading using opposite China Asset and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Wonders Information | China Asset vs. Western Mining Co | China Asset vs. Hygon Information Technology | China Asset vs. JCHX Mining Management |
| Sihui Fuji vs. Guangzhou KingTeller Technology | Sihui Fuji vs. Eyebright Medical Technology | Sihui Fuji vs. Ningbo Fangzheng Automobile | Sihui Fuji vs. Iat Automobile Technology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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