Correlation Between Sinofibers Technology and APT Medical
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By analyzing existing cross correlation between Sinofibers Technology Co and APT Medical, you can compare the effects of market volatilities on Sinofibers Technology and APT Medical 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 APT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and APT Medical.
Diversification Opportunities for Sinofibers Technology and APT Medical
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sinofibers and APT is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and APT Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Medical 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 APT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Medical has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and APT Medical go up and down completely randomly.
Pair Corralation between Sinofibers Technology and APT Medical
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the APT Medical. But the stock apears to be less risky and, when comparing its historical volatility, Sinofibers Technology Co is 1.14 times less risky than APT Medical. The stock trades about -0.34 of its potential returns per unit of risk. The APT Medical is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 33,280 in APT Medical on September 12, 2024 and sell it today you would earn a total of 3,353 from holding APT Medical or generate 10.08% 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. APT Medical
Performance |
| Timeline |
| Sinofibers Technology |
| APT Medical |
Sinofibers Technology and APT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and APT Medical
The main advantage of trading using opposite Sinofibers Technology and APT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, APT Medical 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 APT Medical will offset losses from the drop in APT Medical'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 |
| APT Medical vs. Cultural Investment Holdings | APT Medical vs. Gome Telecom Equipment | APT Medical vs. Holitech Technology Co | APT Medical vs. Zotye Automobile 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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