Correlation Between Integrated Electronic and Sinofibers Technology
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By analyzing existing cross correlation between Integrated Electronic Systems and Sinofibers Technology Co, you can compare the effects of market volatilities on Integrated Electronic 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 Integrated Electronic with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Sinofibers Technology.
Diversification Opportunities for Integrated Electronic and Sinofibers Technology
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integrated and Sinofibers is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Integrated Electronic 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 Integrated Electronic Systems 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 Integrated Electronic i.e., Integrated Electronic and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Integrated Electronic and Sinofibers Technology
Assuming the 90 days trading horizon Integrated Electronic is expected to generate 1.45 times less return on investment than Sinofibers Technology. In addition to that, Integrated Electronic is 1.41 times more volatile than Sinofibers Technology Co. It trades about 0.07 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.15 per unit of volatility. If you would invest 2,712 in Sinofibers Technology Co on November 7, 2024 and sell it today you would earn a total of 119.00 from holding Sinofibers Technology Co or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. Sinofibers Technology Co
Performance |
| Timeline |
| Integrated Electronic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sinofibers Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Integrated Electronic and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and Sinofibers Technology
The main advantage of trading using opposite Integrated Electronic and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic 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.The idea behind Integrated Electronic Systems and Sinofibers Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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