Correlation Between Gansu Yasheng and Sihui Fuji
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Sihui Fuji Electronics, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of Sihui Fuji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Sihui Fuji.
Diversification Opportunities for Gansu Yasheng and Sihui Fuji
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Sihui is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial 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 Gansu Yasheng 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 Gansu Yasheng Industrial 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 Gansu Yasheng i.e., Gansu Yasheng and Sihui Fuji go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Sihui Fuji
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to under-perform the Sihui Fuji. In addition to that, Gansu Yasheng is 1.14 times more volatile than Sihui Fuji Electronics. It trades about -0.05 of its total potential returns per unit of risk. Sihui Fuji Electronics is currently generating about 0.2 per unit of volatility. If you would invest 2,556 in Sihui Fuji Electronics on September 25, 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 |
Gansu Yasheng Industrial vs. Sihui Fuji Electronics
Performance |
Timeline |
Gansu Yasheng Industrial |
Sihui Fuji Electronics |
Gansu Yasheng and Sihui Fuji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gansu Yasheng and Sihui Fuji
The main advantage of trading using opposite Gansu Yasheng and Sihui Fuji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.Gansu Yasheng vs. Industrial and Commercial | Gansu Yasheng vs. China Construction Bank | Gansu Yasheng vs. Agricultural Bank of | Gansu Yasheng vs. Bank of China |
Sihui Fuji vs. Zhuhai Comleader Information | Sihui Fuji vs. Semiconductor Manufacturing Electronics | Sihui Fuji vs. Eastern Communications Co | Sihui Fuji vs. Xinjiang Communications Construction |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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