Correlation Between China Construction and Sihui Fuji
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By analyzing existing cross correlation between China Construction Bank and Sihui Fuji Electronics, you can compare the effects of market volatilities on China Construction 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 Construction with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Sihui Fuji.
Diversification Opportunities for China Construction and Sihui Fuji
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Sihui is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank 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 Construction 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 Construction Bank 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 Construction i.e., China Construction and Sihui Fuji go up and down completely randomly.
Pair Corralation between China Construction and Sihui Fuji
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.32 times more return on investment than Sihui Fuji. However, China Construction Bank is 3.09 times less risky than Sihui Fuji. It trades about 0.26 of its potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.04 per unit of risk. If you would invest 821.00 in China Construction Bank on October 12, 2024 and sell it today you would earn a total of 55.00 from holding China Construction Bank or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Sihui Fuji Electronics
Performance |
| Timeline |
| China Construction Bank |
| Sihui Fuji Electronics |
China Construction and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Sihui Fuji
The main advantage of trading using opposite China Construction and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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 Construction vs. Bank of Suzhou | China Construction vs. Ping An Insurance | China Construction vs. Ningbo Tech Bank Co | China Construction vs. Xiamen Bank Co |
| Sihui Fuji vs. Biwin Storage Technology | Sihui Fuji vs. PetroChina Co Ltd | Sihui Fuji vs. Industrial and Commercial | Sihui Fuji vs. China Construction Bank |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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