Correlation Between Sinofibers Technology and Tibet Huayu
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By analyzing existing cross correlation between Sinofibers Technology Co and Tibet Huayu Mining, you can compare the effects of market volatilities on Sinofibers Technology and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Tibet Huayu.
Diversification Opportunities for Sinofibers Technology and Tibet Huayu
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sinofibers and Tibet is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Tibet Huayu go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Tibet Huayu
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Tibet Huayu. But the stock apears to be less risky and, when comparing its historical volatility, Sinofibers Technology Co is 1.17 times less risky than Tibet Huayu. The stock trades about -0.04 of its potential returns per unit of risk. The Tibet Huayu Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 972.00 in Tibet Huayu Mining on October 12, 2024 and sell it today you would earn a total of 231.00 from holding Tibet Huayu Mining or generate 23.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Tibet Huayu Mining
Performance |
| Timeline |
| Sinofibers Technology |
| Tibet Huayu Mining |
Sinofibers Technology and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Tibet Huayu
The main advantage of trading using opposite Sinofibers Technology and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu'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 |
| Tibet Huayu vs. Muyuan Foodstuff Co | Tibet Huayu vs. Ningbo Tip Rubber | Tibet Huayu vs. Jinsanjiang Silicon Material | Tibet Huayu vs. Guangzhou Tinci Materials |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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