Correlation Between Sihui Fuji and Nanxing Furniture
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By analyzing existing cross correlation between Sihui Fuji Electronics and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Sihui Fuji and Nanxing Furniture 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 Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sihui Fuji and Nanxing Furniture.
Diversification Opportunities for Sihui Fuji and Nanxing Furniture
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sihui and Nanxing is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sihui Fuji Electronics and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture 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 Nanxing Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanxing Furniture has no effect on the direction of Sihui Fuji i.e., Sihui Fuji and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Sihui Fuji and Nanxing Furniture
Assuming the 90 days trading horizon Sihui Fuji Electronics is expected to generate 0.62 times more return on investment than Nanxing Furniture. However, Sihui Fuji Electronics is 1.61 times less risky than Nanxing Furniture. It trades about 0.19 of its potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about -0.04 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 | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sihui Fuji Electronics vs. Nanxing Furniture Machinery
Performance |
Timeline |
Sihui Fuji Electronics |
Nanxing Furniture |
Sihui Fuji and Nanxing Furniture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sihui Fuji and Nanxing Furniture
The main advantage of trading using opposite Sihui Fuji and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sihui Fuji position performs unexpectedly, Nanxing Furniture 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 Nanxing Furniture will offset losses from the drop in Nanxing Furniture'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 |
Nanxing Furniture vs. Bank of China | Nanxing Furniture vs. Kweichow Moutai Co | Nanxing Furniture vs. PetroChina Co Ltd | Nanxing Furniture vs. Bank of Communications |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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