Correlation Between East Money and Sinofibers Technology
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By analyzing existing cross correlation between East Money Information and Sinofibers Technology Co, you can compare the effects of market volatilities on East Money 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 East Money with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Money and Sinofibers Technology.
Diversification Opportunities for East Money and Sinofibers Technology
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between East and Sinofibers is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding East Money Information and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and East Money 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 East Money Information 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 East Money i.e., East Money and Sinofibers Technology go up and down completely randomly.
Pair Corralation between East Money and Sinofibers Technology
Assuming the 90 days trading horizon East Money Information is expected to generate 1.1 times more return on investment than Sinofibers Technology. However, East Money is 1.1 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 1,895 in East Money Information on October 16, 2024 and sell it today you would earn a total of 317.00 from holding East Money Information or generate 16.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Money Information vs. Sinofibers Technology Co
Performance |
| Timeline |
| East Money Information |
| Sinofibers Technology |
East Money and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Money and Sinofibers Technology
The main advantage of trading using opposite East Money and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Money 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.| East Money vs. Southchip Semiconductor Technology | East Money vs. Shenyang Blue Silver | East Money vs. Shannon Semiconductor Technology | East Money vs. Western Mining Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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