Correlation Between Sinofibers Technology and Jiangsu GDK
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By analyzing existing cross correlation between Sinofibers Technology Co and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Sinofibers Technology and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Jiangsu GDK.
Diversification Opportunities for Sinofibers Technology and Jiangsu GDK
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinofibers and Jiangsu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Jiangsu GDK
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Jiangsu GDK. But the stock apears to be less risky and, when comparing its historical volatility, Sinofibers Technology Co is 1.18 times less risky than Jiangsu GDK. The stock trades about -0.34 of its potential returns per unit of risk. The Jiangsu GDK Biotechnology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,565 in Jiangsu GDK Biotechnology on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Jiangsu GDK Biotechnology or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Sinofibers Technology |
| Jiangsu GDK Biotechnology |
Sinofibers Technology and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Jiangsu GDK
The main advantage of trading using opposite Sinofibers Technology and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK'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 |
| Jiangsu GDK vs. Yunnan Xiyi Industrial | Jiangsu GDK vs. Sichuan Fulin Transportation | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Lonkey Industrial 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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