Correlation Between Sinofibers Technology and Hainan Mining
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By analyzing existing cross correlation between Sinofibers Technology Co and Hainan Mining Co, you can compare the effects of market volatilities on Sinofibers Technology and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Hainan Mining.
Diversification Opportunities for Sinofibers Technology and Hainan Mining
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinofibers and Hainan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Hainan Mining go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Hainan Mining
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Hainan Mining. In addition to that, Sinofibers Technology is 1.76 times more volatile than Hainan Mining Co. It trades about -0.16 of its total potential returns per unit of risk. Hainan Mining Co is currently generating about 0.03 per unit of volatility. If you would invest 697.00 in Hainan Mining Co on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Hainan Mining Co or generate 0.86% 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. Hainan Mining Co
Performance |
| Timeline |
| Sinofibers Technology |
| Hainan Mining |
Sinofibers Technology and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Hainan Mining
The main advantage of trading using opposite Sinofibers Technology and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining'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 |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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