Correlation Between Sinofibers Technology and Hangzhou Arcvideo
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By analyzing existing cross correlation between Sinofibers Technology Co and Hangzhou Arcvideo Technology, you can compare the effects of market volatilities on Sinofibers Technology and Hangzhou Arcvideo 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 Hangzhou Arcvideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Hangzhou Arcvideo.
Diversification Opportunities for Sinofibers Technology and Hangzhou Arcvideo
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sinofibers and Hangzhou is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Hangzhou Arcvideo Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Arcvideo 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 Hangzhou Arcvideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Arcvideo has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Hangzhou Arcvideo go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Hangzhou Arcvideo
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 0.79 times more return on investment than Hangzhou Arcvideo. However, Sinofibers Technology Co is 1.26 times less risky than Hangzhou Arcvideo. It trades about -0.05 of its potential returns per unit of risk. Hangzhou Arcvideo Technology is currently generating about -0.44 per unit of risk. If you would invest 2,762 in Sinofibers Technology Co on October 12, 2024 and sell it today you would lose (82.00) from holding Sinofibers Technology Co or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Hangzhou Arcvideo Technology
Performance |
| Timeline |
| Sinofibers Technology |
| Hangzhou Arcvideo |
Sinofibers Technology and Hangzhou Arcvideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Hangzhou Arcvideo
The main advantage of trading using opposite Sinofibers Technology and Hangzhou Arcvideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Hangzhou Arcvideo 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 Hangzhou Arcvideo will offset losses from the drop in Hangzhou Arcvideo's long position.| Sinofibers Technology vs. Anhui Xinhua Media | Sinofibers Technology vs. Thinkingdom Media Group | Sinofibers Technology vs. Easyhome New Retail | Sinofibers Technology vs. Zhongyin Babi Food |
| Hangzhou Arcvideo vs. Changchun UP Optotech | Hangzhou Arcvideo vs. Digiwin Software Co | Hangzhou Arcvideo vs. Kuangda Technology Group | Hangzhou Arcvideo vs. Dhc Software 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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