Correlation Between Sinofibers Technology and Beijing Wantai
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By analyzing existing cross correlation between Sinofibers Technology Co and Beijing Wantai Biological, you can compare the effects of market volatilities on Sinofibers Technology and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Beijing Wantai.
Diversification Opportunities for Sinofibers Technology and Beijing Wantai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinofibers and Beijing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Beijing Wantai go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Beijing Wantai
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 2.0 times more return on investment than Beijing Wantai. However, Sinofibers Technology is 2.0 times more volatile than Beijing Wantai Biological. It trades about 0.15 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about 0.03 per unit of risk. If you would invest 1,939 in Sinofibers Technology Co on August 28, 2024 and sell it today you would earn a total of 788.00 from holding Sinofibers Technology Co or generate 40.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Beijing Wantai Biological
Performance |
| Timeline |
| Sinofibers Technology |
| Beijing Wantai Biological |
Sinofibers Technology and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Beijing Wantai
The main advantage of trading using opposite Sinofibers Technology and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai'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 |
| Beijing Wantai vs. Shenzhen Clou Electronics | Beijing Wantai vs. Techshine Electronics Co | Beijing Wantai vs. Sinofibers Technology Co | Beijing Wantai vs. Epoxy Base Electronic |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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