Correlation Between Sinofibers Technology and Shenyang Blue
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By analyzing existing cross correlation between Sinofibers Technology Co and Shenyang Blue Silver, you can compare the effects of market volatilities on Sinofibers Technology and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Shenyang Blue.
Diversification Opportunities for Sinofibers Technology and Shenyang Blue
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinofibers and Shenyang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Shenyang Blue go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Shenyang Blue
Assuming the 90 days trading horizon Sinofibers Technology is expected to generate 4.55 times less return on investment than Shenyang Blue. But when comparing it to its historical volatility, Sinofibers Technology Co is 1.4 times less risky than Shenyang Blue. It trades about 0.04 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,527 in Shenyang Blue Silver on September 1, 2024 and sell it today you would earn a total of 1,198 from holding Shenyang Blue Silver or generate 78.45% 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. Shenyang Blue Silver
Performance |
| Timeline |
| Sinofibers Technology |
| Shenyang Blue Silver |
Sinofibers Technology and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Shenyang Blue
The main advantage of trading using opposite Sinofibers Technology and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.| Sinofibers Technology vs. Mengtian Home Group | Sinofibers Technology vs. Qtone Education Group | Sinofibers Technology vs. Time Publishing and | Sinofibers Technology vs. Dymatic Chemicals |
| Shenyang Blue vs. Kuangda Technology Group | Shenyang Blue vs. Sinofibers Technology Co | Shenyang Blue vs. China World Trade | Shenyang Blue vs. Changchun UP Optotech |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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