Correlation Between Guangdong Xiongsu and Sinofibers Technology
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Sinofibers Technology Co, you can compare the effects of market volatilities on Guangdong Xiongsu 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 Guangdong Xiongsu with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Sinofibers Technology.
Diversification Opportunities for Guangdong Xiongsu and Sinofibers Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Sinofibers is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu 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 Guangdong Xiongsu 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 Guangdong Xiongsu 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 Guangdong Xiongsu i.e., Guangdong Xiongsu and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Sinofibers Technology
Assuming the 90 days trading horizon Guangdong Xiongsu is expected to generate 3.45 times less return on investment than Sinofibers Technology. But when comparing it to its historical volatility, Guangdong Xiongsu Technology is 1.19 times less risky than Sinofibers Technology. It trades about 0.13 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 2,638 in Sinofibers Technology Co on December 11, 2024 and sell it today you would earn a total of 1,041 from holding Sinofibers Technology Co or generate 39.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Sinofibers Technology Co
Performance |
| Timeline |
| Guangdong Xiongsu |
| Sinofibers Technology |
Guangdong Xiongsu and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Sinofibers Technology
The main advantage of trading using opposite Guangdong Xiongsu and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu 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.| Guangdong Xiongsu vs. Jinsanjiang Silicon Material | Guangdong Xiongsu vs. Harbin Air Conditioning | Guangdong Xiongsu vs. Ningbo Tip Rubber | Guangdong Xiongsu vs. BizConf Telecom 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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