Correlation Between Sinofibers Technology and Shandong Sanyuan
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By analyzing existing cross correlation between Sinofibers Technology Co and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Sinofibers Technology and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Shandong Sanyuan.
Diversification Opportunities for Sinofibers Technology and Shandong Sanyuan
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinofibers and Shandong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Shandong Sanyuan
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 1.03 times more return on investment than Shandong Sanyuan. However, Sinofibers Technology is 1.03 times more volatile than Shandong Sanyuan Biotechnology. It trades about -0.05 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.27 per unit of risk. If you would invest 2,762 in Sinofibers Technology Co on October 12, 2024 and sell it today you would lose (82.00) from holding Sinofibers Technology Co or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Sinofibers Technology |
| Shandong Sanyuan Bio |
Sinofibers Technology and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Shandong Sanyuan
The main advantage of trading using opposite Sinofibers Technology and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan'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 |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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