Correlation Between TianJin 712 and Sihui Fuji
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By analyzing existing cross correlation between TianJin 712 Communication and Sihui Fuji Electronics, you can compare the effects of market volatilities on TianJin 712 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 TianJin 712 with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Sihui Fuji.
Diversification Opportunities for TianJin 712 and Sihui Fuji
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between TianJin and Sihui is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication 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 TianJin 712 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 TianJin 712 Communication 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 TianJin 712 i.e., TianJin 712 and Sihui Fuji go up and down completely randomly.
Pair Corralation between TianJin 712 and Sihui Fuji
Assuming the 90 days trading horizon TianJin 712 is expected to generate 13.14 times less return on investment than Sihui Fuji. But when comparing it to its historical volatility, TianJin 712 Communication is 1.62 times less risky than Sihui Fuji. It trades about 0.06 of its potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 2,585 in Sihui Fuji Electronics on November 8, 2024 and sell it today you would earn a total of 991.00 from holding Sihui Fuji Electronics or generate 38.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Sihui Fuji Electronics
Performance |
| Timeline |
| TianJin 712 Communication |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sihui Fuji Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
TianJin 712 and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Sihui Fuji
The main advantage of trading using opposite TianJin 712 and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 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.The idea behind TianJin 712 Communication and Sihui Fuji Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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