Correlation Between Sinofibers Technology and HMTNew Technical
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By analyzing existing cross correlation between Sinofibers Technology Co and HMTNew Technical, you can compare the effects of market volatilities on Sinofibers Technology and HMTNew Technical 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 HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and HMTNew Technical.
Diversification Opportunities for Sinofibers Technology and HMTNew Technical
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinofibers and HMTNew is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical 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 HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and HMTNew Technical go up and down completely randomly.
Pair Corralation between Sinofibers Technology and HMTNew Technical
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the HMTNew Technical. But the stock apears to be less risky and, when comparing its historical volatility, Sinofibers Technology Co is 1.42 times less risky than HMTNew Technical. The stock trades about -0.06 of its potential returns per unit of risk. The HMTNew Technical is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,959 in HMTNew Technical on September 5, 2024 and sell it today you would earn a total of 263.00 from holding HMTNew Technical or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. HMTNew Technical
Performance |
| Timeline |
| Sinofibers Technology |
| HMTNew Technical |
Sinofibers Technology and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and HMTNew Technical
The main advantage of trading using opposite Sinofibers Technology and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical'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 |
| HMTNew Technical vs. Jointo Energy Investment | HMTNew Technical vs. Changchun UP Optotech | HMTNew Technical vs. Sinofibers Technology Co | HMTNew Technical vs. Nuode Investment Co |
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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