Correlation Between Sinofibers Technology and Eastern Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinofibers Technology Co and Eastern Communications Co, you can compare the effects of market volatilities on Sinofibers Technology and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Eastern Communications.
Diversification Opportunities for Sinofibers Technology and Eastern Communications
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinofibers and Eastern is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Eastern Communications go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Eastern Communications
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to under-perform the Eastern Communications. In addition to that, Sinofibers Technology is 1.29 times more volatile than Eastern Communications Co. It trades about -0.16 of its total potential returns per unit of risk. Eastern Communications Co is currently generating about 0.05 per unit of volatility. If you would invest 42.00 in Eastern Communications Co on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Eastern Communications Co or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Eastern Communications Co
Performance |
| Timeline |
| Sinofibers Technology |
| Eastern Communications |
Sinofibers Technology and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Eastern Communications
The main advantage of trading using opposite Sinofibers Technology and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Sinofibers Technology vs. Mengtian Home Group | Sinofibers Technology vs. Qtone Education Group | Sinofibers Technology vs. Time Publishing and | Sinofibers Technology vs. Dymatic Chemicals |
| Eastern Communications vs. Wuxi Chemical Equipment | Eastern Communications vs. Yangmei Chemical Co | Eastern Communications vs. Lander Sports Development | Eastern Communications vs. Jiangsu Jinling Sports |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |