Correlation Between Sihui Fuji and Xiangyang Automobile
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By analyzing existing cross correlation between Sihui Fuji Electronics and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Sihui Fuji and Xiangyang Automobile 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 Sihui Fuji with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sihui Fuji and Xiangyang Automobile.
Diversification Opportunities for Sihui Fuji and Xiangyang Automobile
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sihui and Xiangyang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sihui Fuji Electronics and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Sihui Fuji 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 Sihui Fuji Electronics are associated (or correlated) with Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Sihui Fuji i.e., Sihui Fuji and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Sihui Fuji and Xiangyang Automobile
Assuming the 90 days trading horizon Sihui Fuji Electronics is expected to generate 0.5 times more return on investment than Xiangyang Automobile. However, Sihui Fuji Electronics is 1.99 times less risky than Xiangyang Automobile. It trades about 0.19 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.06 per unit of risk. If you would invest 2,556 in Sihui Fuji Electronics on September 24, 2024 and sell it today you would earn a total of 211.00 from holding Sihui Fuji Electronics or generate 8.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sihui Fuji Electronics vs. Xiangyang Automobile Bearing
Performance |
Timeline |
Sihui Fuji Electronics |
Xiangyang Automobile |
Sihui Fuji and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sihui Fuji and Xiangyang Automobile
The main advantage of trading using opposite Sihui Fuji and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sihui Fuji position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.Sihui Fuji vs. Jason Furniture | Sihui Fuji vs. Bus Online Co | Sihui Fuji vs. BTG Hotels Group | Sihui Fuji vs. Nanxing Furniture Machinery |
Xiangyang Automobile vs. Sihui Fuji Electronics | Xiangyang Automobile vs. Fuzhou Rockchip Electronics | Xiangyang Automobile vs. Juewei Food Co | Xiangyang Automobile vs. Shenzhen Clou Electronics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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