Correlation Between Zhongfu Information and Sinofibers Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongfu Information and Sinofibers Technology Co, you can compare the effects of market volatilities on Zhongfu Information 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 Zhongfu Information with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongfu Information and Sinofibers Technology.
Diversification Opportunities for Zhongfu Information and Sinofibers Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhongfu and Sinofibers is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zhongfu 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 Zhongfu Information 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 Zhongfu 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 Zhongfu Information i.e., Zhongfu Information and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Zhongfu Information and Sinofibers Technology
Assuming the 90 days trading horizon Zhongfu Information is expected to generate 1.24 times more return on investment than Sinofibers Technology. However, Zhongfu Information is 1.24 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 0.03 per unit of risk. If you would invest 1,469 in Zhongfu Information on October 12, 2024 and sell it today you would earn a total of 83.00 from holding Zhongfu Information or generate 5.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongfu Information vs. Sinofibers Technology Co
Performance |
Timeline |
Zhongfu Information |
Sinofibers Technology |
Zhongfu Information and Sinofibers Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongfu Information and Sinofibers Technology
The main advantage of trading using opposite Zhongfu Information and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongfu Information 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.Zhongfu Information vs. Dawning Information Industry | Zhongfu Information vs. Chahua Modern Housewares | Zhongfu Information vs. Sublime China Information | Zhongfu Information vs. Wonders Information |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
CEOs Directory Screen CEOs from public companies around the world | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |