Correlation Between Shenzhen Silver and Sinofibers Technology
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By analyzing existing cross correlation between Shenzhen Silver Basis and Sinofibers Technology Co, you can compare the effects of market volatilities on Shenzhen Silver 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 Shenzhen Silver with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Sinofibers Technology.
Diversification Opportunities for Shenzhen Silver and Sinofibers Technology
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Sinofibers is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Shenzhen Silver 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 Shenzhen Silver Basis 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 Shenzhen Silver i.e., Shenzhen Silver and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Sinofibers Technology
Assuming the 90 days trading horizon Shenzhen Silver Basis is expected to generate 1.54 times more return on investment than Sinofibers Technology. However, Shenzhen Silver is 1.54 times more volatile than Sinofibers Technology Co. It trades about 0.03 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.04 per unit of risk. If you would invest 776.00 in Shenzhen Silver Basis on October 11, 2024 and sell it today you would earn a total of 127.00 from holding Shenzhen Silver Basis or generate 16.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Sinofibers Technology Co
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Sinofibers Technology |
Shenzhen Silver and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Sinofibers Technology
The main advantage of trading using opposite Shenzhen Silver and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver 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.| Shenzhen Silver vs. Eastern Air Logistics | Shenzhen Silver vs. Sinocat Environmental Technology | Shenzhen Silver vs. Invengo Information Technology | Shenzhen Silver vs. Sharetronic Data Technology |
| Sinofibers Technology vs. V V Food | Sinofibers Technology vs. Guangdong Silvere Sci | Sinofibers Technology vs. Qingdao Foods Co | Sinofibers Technology vs. New Hope Dairy |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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