Correlation Between Sinofibers Technology and Tongyu Communication
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By analyzing existing cross correlation between Sinofibers Technology Co and Tongyu Communication, you can compare the effects of market volatilities on Sinofibers Technology and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Tongyu Communication.
Diversification Opportunities for Sinofibers Technology and Tongyu Communication
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sinofibers and Tongyu is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Tongyu Communication go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Tongyu Communication
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 0.79 times more return on investment than Tongyu Communication. However, Sinofibers Technology Co is 1.26 times less risky than Tongyu Communication. It trades about -0.04 of its potential returns per unit of risk. Tongyu Communication is currently generating about -0.19 per unit of risk. If you would invest 2,747 in Sinofibers Technology Co on October 11, 2024 and sell it today you would lose (67.00) from holding Sinofibers Technology Co or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Tongyu Communication
Performance |
| Timeline |
| Sinofibers Technology |
| Tongyu Communication |
Sinofibers Technology and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Tongyu Communication
The main advantage of trading using opposite Sinofibers Technology and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Sinofibers Technology vs. V V Food | Sinofibers Technology vs. Guangdong Silvere Sci | Sinofibers Technology vs. Qingdao Foods Co | Sinofibers Technology vs. New Hope Dairy |
| Tongyu Communication vs. Emdoor Information Co | Tongyu Communication vs. Konfoong Materials International | Tongyu Communication vs. Sanxiang Advanced Materials | Tongyu Communication vs. Keda Clean Energy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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