Correlation Between Sinofibers Technology and Yuanjie Semiconductor
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By analyzing existing cross correlation between Sinofibers Technology Co and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on Sinofibers Technology and Yuanjie Semiconductor 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 Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Yuanjie Semiconductor.
Diversification Opportunities for Sinofibers Technology and Yuanjie Semiconductor
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinofibers and Yuanjie is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Yuanjie Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanjie Semiconductor 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 Yuanjie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanjie Semiconductor has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Yuanjie Semiconductor
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 0.65 times more return on investment than Yuanjie Semiconductor. However, Sinofibers Technology Co is 1.54 times less risky than Yuanjie Semiconductor. It trades about -0.05 of its potential returns per unit of risk. Yuanjie Semiconductor Technology is currently generating about -0.05 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Yuanjie Semiconductor Technolo
Performance |
| Timeline |
| Sinofibers Technology |
| Yuanjie Semiconductor |
Sinofibers Technology and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Yuanjie Semiconductor
The main advantage of trading using opposite Sinofibers Technology and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Yuanjie Semiconductor 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 Yuanjie Semiconductor will offset losses from the drop in Yuanjie Semiconductor'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 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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