Correlation Between Sinofibers Technology and Suzhou Mingzhi
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By analyzing existing cross correlation between Sinofibers Technology Co and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Sinofibers Technology and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Suzhou Mingzhi.
Diversification Opportunities for Sinofibers Technology and Suzhou Mingzhi
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sinofibers and Suzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Suzhou Mingzhi
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Suzhou Mingzhi. But the stock apears to be less risky and, when comparing its historical volatility, Sinofibers Technology Co is 1.11 times less risky than Suzhou Mingzhi. The stock trades about -0.06 of its potential returns per unit of risk. The Suzhou Mingzhi Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,769 in Suzhou Mingzhi Technology on October 25, 2024 and sell it today you would earn a total of 86.00 from holding Suzhou Mingzhi Technology or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Sinofibers Technology |
| Suzhou Mingzhi Technology |
Sinofibers Technology and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Suzhou Mingzhi
The main advantage of trading using opposite Sinofibers Technology and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Rongsheng Petrochemical Co |
| Suzhou Mingzhi vs. Kweichow Moutai Co | Suzhou Mingzhi vs. Contemporary Amperex Technology | Suzhou Mingzhi vs. Beijing Roborock Technology | Suzhou Mingzhi vs. BYD Co Ltd |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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