Correlation Between Sinofibers Technology and Suzhou Industrial
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By analyzing existing cross correlation between Sinofibers Technology Co and Suzhou Industrial Park, you can compare the effects of market volatilities on Sinofibers Technology and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Suzhou Industrial.
Diversification Opportunities for Sinofibers Technology and Suzhou Industrial
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinofibers and Suzhou is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Suzhou Industrial
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Suzhou Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Sinofibers Technology Co is 1.28 times less risky than Suzhou Industrial. The stock trades about -0.04 of its potential returns per unit of risk. The Suzhou Industrial Park is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 859.00 in Suzhou Industrial Park on October 12, 2024 and sell it today you would earn a total of 194.00 from holding Suzhou Industrial Park or generate 22.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Suzhou Industrial Park
Performance |
| Timeline |
| Sinofibers Technology |
| Suzhou Industrial Park |
Sinofibers Technology and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Suzhou Industrial
The main advantage of trading using opposite Sinofibers Technology and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial's long position.| Sinofibers Technology vs. Anhui Xinhua Media | Sinofibers Technology vs. Thinkingdom Media Group | Sinofibers Technology vs. Easyhome New Retail | Sinofibers Technology vs. Zhongyin Babi Food |
| Suzhou Industrial vs. Dr Peng Telecom | Suzhou Industrial vs. Mengtian Home Group | Suzhou Industrial vs. Markor International Home | Suzhou Industrial vs. Bank of Communications |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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