Correlation Between Sinofibers Technology and Luzhou Lao
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By analyzing existing cross correlation between Sinofibers Technology Co and Luzhou Lao Jiao, you can compare the effects of market volatilities on Sinofibers Technology and Luzhou Lao 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 Sinofibers Technology with a short position of Luzhou Lao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Luzhou Lao.
Diversification Opportunities for Sinofibers Technology and Luzhou Lao
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinofibers and Luzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Luzhou Lao Jiao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luzhou Lao Jiao and Sinofibers Technology 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 Sinofibers Technology Co are associated (or correlated) with Luzhou Lao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luzhou Lao Jiao has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Luzhou Lao go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Luzhou Lao
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 1.23 times more return on investment than Luzhou Lao. However, Sinofibers Technology is 1.23 times more volatile than Luzhou Lao Jiao. It trades about 0.02 of its potential returns per unit of risk. Luzhou Lao Jiao is currently generating about -0.03 per unit of risk. If you would invest 2,650 in Sinofibers Technology Co on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Sinofibers Technology Co or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Luzhou Lao Jiao
Performance |
| Timeline |
| Sinofibers Technology |
| Luzhou Lao Jiao |
Sinofibers Technology and Luzhou Lao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Luzhou Lao
The main advantage of trading using opposite Sinofibers Technology and Luzhou Lao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Luzhou Lao 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 Luzhou Lao will offset losses from the drop in Luzhou Lao's long position.| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Rongsheng Petrochemical Co | Sinofibers Technology vs. Hoshine Silicon Ind |
| Luzhou Lao vs. Eastern Communications Co | Luzhou Lao vs. Shenzhen Kexin Communication | Luzhou Lao vs. Iat Automobile Technology | Luzhou Lao vs. Sinofibers Technology 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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