Correlation Between Zhejiang Daily and Sihui Fuji
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By analyzing existing cross correlation between Zhejiang Daily Media and Sihui Fuji Electronics, you can compare the effects of market volatilities on Zhejiang Daily 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 Zhejiang Daily with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and Sihui Fuji.
Diversification Opportunities for Zhejiang Daily and Sihui Fuji
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Sihui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media 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 Zhejiang Daily 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 Zhejiang Daily Media 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 Zhejiang Daily i.e., Zhejiang Daily and Sihui Fuji go up and down completely randomly.
Pair Corralation between Zhejiang Daily and Sihui Fuji
Assuming the 90 days trading horizon Zhejiang Daily Media is expected to generate 1.08 times more return on investment than Sihui Fuji. However, Zhejiang Daily is 1.08 times more volatile than Sihui Fuji Electronics. It trades about 0.03 of its potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.03 per unit of risk. If you would invest 874.00 in Zhejiang Daily Media on September 26, 2024 and sell it today you would earn a total of 187.00 from holding Zhejiang Daily Media or generate 21.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Daily Media vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Zhejiang Daily Media |
| Sihui Fuji Electronics |
Zhejiang Daily and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Daily and Sihui Fuji
The main advantage of trading using opposite Zhejiang Daily and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily 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.| Zhejiang Daily vs. Western Metal Materials | Zhejiang Daily vs. Senci Electric Machinery | Zhejiang Daily vs. Xingguang Agricultural Mach | Zhejiang Daily vs. Kangxin New Materials |
| Sihui Fuji vs. Jointo Energy Investment | Sihui Fuji vs. Changchun UP Optotech | Sihui Fuji vs. Henan Shuanghui Investment | Sihui Fuji vs. Tieling Newcity Investment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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