Correlation Between Eastern Communications and Sihui Fuji
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By analyzing existing cross correlation between Eastern Communications Co and Sihui Fuji Electronics, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Sihui Fuji.
Diversification Opportunities for Eastern Communications and Sihui Fuji
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and Sihui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co 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 Eastern Communications 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 Eastern Communications Co 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 Eastern Communications i.e., Eastern Communications and Sihui Fuji go up and down completely randomly.
Pair Corralation between Eastern Communications and Sihui Fuji
Assuming the 90 days trading horizon Eastern Communications is expected to generate 4.46 times less return on investment than Sihui Fuji. But when comparing it to its historical volatility, Eastern Communications Co is 1.07 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 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,556 in Sihui Fuji Electronics on September 25, 2024 and sell it today you would earn a total of 329.00 from holding Sihui Fuji Electronics or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Sihui Fuji Electronics
Performance |
| Timeline |
| Eastern Communications |
| Sihui Fuji Electronics |
Eastern Communications and Sihui Fuji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Sihui Fuji
The main advantage of trading using opposite Eastern Communications and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. Agricultural Bank of | Eastern Communications vs. China Construction Bank | Eastern Communications vs. Bank of China |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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