Correlation Between Sinofibers Technology and Guangzhou Fangbang
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By analyzing existing cross correlation between Sinofibers Technology Co and Guangzhou Fangbang Electronics, you can compare the effects of market volatilities on Sinofibers Technology and Guangzhou Fangbang 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 Guangzhou Fangbang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Guangzhou Fangbang.
Diversification Opportunities for Sinofibers Technology and Guangzhou Fangbang
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinofibers and Guangzhou is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Guangzhou Fangbang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Fangbang 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 Guangzhou Fangbang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Fangbang has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Guangzhou Fangbang go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Guangzhou Fangbang
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 0.87 times more return on investment than Guangzhou Fangbang. However, Sinofibers Technology Co is 1.15 times less risky than Guangzhou Fangbang. It trades about -0.08 of its potential returns per unit of risk. Guangzhou Fangbang Electronics is currently generating about -0.3 per unit of risk. If you would invest 2,759 in Sinofibers Technology Co on October 15, 2024 and sell it today you would lose (121.00) from holding Sinofibers Technology Co or give up 4.39% 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. Guangzhou Fangbang Electronics
Performance |
| Timeline |
| Sinofibers Technology |
| Guangzhou Fangbang |
Sinofibers Technology and Guangzhou Fangbang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Guangzhou Fangbang
The main advantage of trading using opposite Sinofibers Technology and Guangzhou Fangbang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Guangzhou Fangbang 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 Guangzhou Fangbang will offset losses from the drop in Guangzhou Fangbang'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 |
| Guangzhou Fangbang vs. Hengli Industrial Development | Guangzhou Fangbang vs. Beijing Kingsoft Office | Guangzhou Fangbang vs. Huizhou Speed Wireless | Guangzhou Fangbang vs. Fibocom Wireless |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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