Correlation Between Sinofibers Technology and Nanjing Putian
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By analyzing existing cross correlation between Sinofibers Technology Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Sinofibers Technology and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Nanjing Putian.
Diversification Opportunities for Sinofibers Technology and Nanjing Putian
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinofibers and Nanjing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Nanjing Putian go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Nanjing Putian
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Sinofibers Technology Co is 1.21 times less risky than Nanjing Putian. The stock trades about -0.02 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 303.00 in Nanjing Putian Telecommunications on September 28, 2024 and sell it today you would earn a total of 76.00 from holding Nanjing Putian Telecommunications or generate 25.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Sinofibers Technology |
| Nanjing Putian Telec |
Sinofibers Technology and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Nanjing Putian
The main advantage of trading using opposite Sinofibers Technology and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian'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 |
| Nanjing Putian vs. Tianshui Huatian Technology | Nanjing Putian vs. Eastroc Beverage Group | Nanjing Putian vs. Sinofibers Technology Co | Nanjing Putian vs. Kuang Chi Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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