Correlation Between XiaMen HongXin and Sinofibers Technology
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Sinofibers Technology Co, you can compare the effects of market volatilities on XiaMen HongXin 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 XiaMen HongXin with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Sinofibers Technology.
Diversification Opportunities for XiaMen HongXin and Sinofibers Technology
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between XiaMen and Sinofibers is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and XiaMen HongXin 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 XiaMen HongXin Electron tech 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 XiaMen HongXin i.e., XiaMen HongXin and Sinofibers Technology go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Sinofibers Technology
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.49 times more return on investment than Sinofibers Technology. However, XiaMen HongXin is 1.49 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 -0.04 per unit of risk. If you would invest 1,189 in XiaMen HongXin Electron tech on October 12, 2024 and sell it today you would earn a total of 752.00 from holding XiaMen HongXin Electron tech or generate 63.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Sinofibers Technology Co
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Sinofibers Technology |
XiaMen HongXin and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Sinofibers Technology
The main advantage of trading using opposite XiaMen HongXin and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin 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.| XiaMen HongXin vs. Biwin Storage Technology | XiaMen HongXin vs. PetroChina Co Ltd | XiaMen HongXin vs. Industrial and Commercial | XiaMen HongXin vs. China Construction Bank |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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