Correlation Between Sinofibers Technology and Sichuan Jiuyuan
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By analyzing existing cross correlation between Sinofibers Technology Co and Sichuan Jiuyuan Yinhai, you can compare the effects of market volatilities on Sinofibers Technology and Sichuan Jiuyuan 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 Sichuan Jiuyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Sichuan Jiuyuan.
Diversification Opportunities for Sinofibers Technology and Sichuan Jiuyuan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinofibers and Sichuan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Sichuan Jiuyuan Yinhai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jiuyuan Yinhai 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 Sichuan Jiuyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jiuyuan Yinhai has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Sichuan Jiuyuan go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Sichuan Jiuyuan
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Sichuan Jiuyuan. But the stock apears to be less risky and, when comparing its historical volatility, Sinofibers Technology Co is 1.87 times less risky than Sichuan Jiuyuan. The stock trades about -0.25 of its potential returns per unit of risk. The Sichuan Jiuyuan Yinhai is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 2,311 in Sichuan Jiuyuan Yinhai on September 14, 2024 and sell it today you would lose (262.00) from holding Sichuan Jiuyuan Yinhai or give up 11.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Sichuan Jiuyuan Yinhai
Performance |
| Timeline |
| Sinofibers Technology |
| Sichuan Jiuyuan Yinhai |
Sinofibers Technology and Sichuan Jiuyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Sichuan Jiuyuan
The main advantage of trading using opposite Sinofibers Technology and Sichuan Jiuyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Sichuan Jiuyuan 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 Sichuan Jiuyuan will offset losses from the drop in Sichuan Jiuyuan's long position.| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Shandong Gold Mining |
| Sichuan Jiuyuan vs. Southern PublishingMedia Co | Sichuan Jiuyuan vs. Qingdao Foods Co | Sichuan Jiuyuan vs. Time Publishing and | Sichuan Jiuyuan vs. JuneYao Dairy 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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