Correlation Between Gansu Huangtai and Sinofibers Technology
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Sinofibers Technology Co, you can compare the effects of market volatilities on Gansu Huangtai and Sinofibers Technology 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 Huangtai with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Sinofibers Technology.
Diversification Opportunities for Gansu Huangtai and Sinofibers Technology
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gansu and Sinofibers is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Gansu Huangtai 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 Huangtai Wine marketing are associated (or correlated) with Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Sinofibers Technology
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 2.13 times more return on investment than Sinofibers Technology. However, Gansu Huangtai is 2.13 times more volatile than Sinofibers Technology Co. It trades about 0.07 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.06 per unit of risk. If you would invest 1,500 in Gansu Huangtai Wine marketing on October 29, 2024 and sell it today you would earn a total of 74.00 from holding Gansu Huangtai Wine marketing or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Sinofibers Technology Co
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Sinofibers Technology |
Gansu Huangtai and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Sinofibers Technology
The main advantage of trading using opposite Gansu Huangtai and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| Gansu Huangtai vs. Tangel Publishing | Gansu Huangtai vs. Heilongjiang Publishing Media | Gansu Huangtai vs. Youyou Foods Co | Gansu Huangtai vs. Xinhua Winshare Publishing |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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