Correlation Between Dongguan Chitwing and Sinofibers Technology
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By analyzing existing cross correlation between Dongguan Chitwing Technology and Sinofibers Technology Co, you can compare the effects of market volatilities on Dongguan Chitwing 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 Dongguan Chitwing with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Chitwing and Sinofibers Technology.
Diversification Opportunities for Dongguan Chitwing and Sinofibers Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongguan and Sinofibers is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Chitwing Technology and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Dongguan Chitwing 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 Dongguan Chitwing Technology 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 Dongguan Chitwing i.e., Dongguan Chitwing and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Dongguan Chitwing and Sinofibers Technology
Assuming the 90 days trading horizon Dongguan Chitwing Technology is expected to generate 1.47 times more return on investment than Sinofibers Technology. However, Dongguan Chitwing is 1.47 times more volatile than Sinofibers Technology Co. It trades about -0.05 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.16 per unit of risk. If you would invest 2,491 in Dongguan Chitwing Technology on September 1, 2024 and sell it today you would lose (181.00) from holding Dongguan Chitwing Technology or give up 7.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Chitwing Technology vs. Sinofibers Technology Co
Performance |
| Timeline |
| Dongguan Chitwing |
| Sinofibers Technology |
Dongguan Chitwing and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Chitwing and Sinofibers Technology
The main advantage of trading using opposite Dongguan Chitwing and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Chitwing 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.| Dongguan Chitwing vs. China Petroleum Chemical | Dongguan Chitwing vs. PetroChina Co Ltd | Dongguan Chitwing vs. China State Construction | Dongguan Chitwing vs. China Railway Group |
| Sinofibers Technology vs. Mengtian Home Group | Sinofibers Technology vs. Qtone Education Group | Sinofibers Technology vs. Time Publishing and | Sinofibers Technology vs. Dymatic Chemicals |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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