Correlation Between Sinofibers Technology and Dawning Information
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By analyzing existing cross correlation between Sinofibers Technology Co and Dawning Information Industry, you can compare the effects of market volatilities on Sinofibers Technology and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Dawning Information.
Diversification Opportunities for Sinofibers Technology and Dawning Information
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinofibers and Dawning is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Dawning Information go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Dawning Information
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Dawning Information. But the stock apears to be less risky and, when comparing its historical volatility, Sinofibers Technology Co is 1.81 times less risky than Dawning Information. The stock trades about -0.26 of its potential returns per unit of risk. The Dawning Information Industry is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 8,390 in Dawning Information Industry on September 13, 2024 and sell it today you would lose (1,018) from holding Dawning Information Industry or give up 12.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Dawning Information Industry
Performance |
| Timeline |
| Sinofibers Technology |
| Dawning Information |
Sinofibers Technology and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Dawning Information
The main advantage of trading using opposite Sinofibers Technology and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Shandong Gold Mining |
| Dawning Information vs. Dhc Software Co | Dawning Information vs. ChengDu Hi Tech Development | Dawning Information vs. Sinofibers Technology Co | Dawning Information vs. Qingdao Hi Tech Moulds |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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