Correlation Between Sinofibers Technology and Xinya Electronic
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By analyzing existing cross correlation between Sinofibers Technology Co and Xinya Electronic Co, you can compare the effects of market volatilities on Sinofibers Technology and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Xinya Electronic.
Diversification Opportunities for Sinofibers Technology and Xinya Electronic
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinofibers and Xinya is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Xinya Electronic go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Xinya Electronic
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 1.34 times more return on investment than Xinya Electronic. However, Sinofibers Technology is 1.34 times more volatile than Xinya Electronic Co. It trades about 0.09 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.07 per unit of risk. If you would invest 2,126 in Sinofibers Technology Co on September 27, 2024 and sell it today you would earn a total of 821.00 from holding Sinofibers Technology Co or generate 38.62% 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. Xinya Electronic Co
Performance |
| Timeline |
| Sinofibers Technology |
| Xinya Electronic |
Sinofibers Technology and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Xinya Electronic
The main advantage of trading using opposite Sinofibers Technology and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Sinofibers Technology vs. RoadMain T Co | Sinofibers Technology vs. Jilin Jlu Communication | Sinofibers Technology vs. Xinjiang Communications Construction | Sinofibers Technology vs. Haima Automobile Group |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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