Correlation Between Epoxy Base and Sihui Fuji
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By analyzing existing cross correlation between Epoxy Base Electronic and Sihui Fuji Electronics, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Sihui Fuji.
Diversification Opportunities for Epoxy Base and Sihui Fuji
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Epoxy and Sihui is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base 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 Epoxy Base 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 Epoxy Base 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 Epoxy Base i.e., Epoxy Base and Sihui Fuji go up and down completely randomly.
Pair Corralation between Epoxy Base and Sihui Fuji
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to under-perform the Sihui Fuji. But the stock apears to be less risky and, when comparing its historical volatility, Epoxy Base Electronic is 1.04 times less risky than Sihui Fuji. The stock trades about -0.11 of its potential returns per unit of risk. The Sihui Fuji Electronics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,742 in Sihui Fuji Electronics on October 14, 2024 and sell it today you would lose (2.00) from holding Sihui Fuji Electronics or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Epoxy Base Electronic |
| Sihui Fuji Electronics |
Epoxy Base and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Sihui Fuji
The main advantage of trading using opposite Epoxy Base and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Silkroad Visual Technology | Epoxy Base vs. Chengdu Xinzhu RoadBridge | Epoxy Base vs. Telling Telecommunication Holding | Epoxy Base vs. Tongyu Communication |
| Sihui Fuji vs. Huizhou Speed Wireless | Sihui Fuji vs. Haima Automobile Group | Sihui Fuji vs. Iat Automobile Technology | Sihui Fuji vs. Guangdong Jingyi Metal |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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