Correlation Between SSAW Hotels and Sinofibers Technology
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By analyzing existing cross correlation between SSAW Hotels Resorts and Sinofibers Technology Co, you can compare the effects of market volatilities on SSAW Hotels and Sinofibers Technology 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 SSAW Hotels with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and Sinofibers Technology.
Diversification Opportunities for SSAW Hotels and Sinofibers Technology
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SSAW and Sinofibers is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and SSAW Hotels 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 SSAW Hotels Resorts are associated (or correlated) with Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of SSAW Hotels i.e., SSAW Hotels and Sinofibers Technology go up and down completely randomly.
Pair Corralation between SSAW Hotels and Sinofibers Technology
Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to under-perform the Sinofibers Technology. In addition to that, SSAW Hotels is 1.45 times more volatile than Sinofibers Technology Co. It trades about -0.08 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.06 per unit of volatility. If you would invest 2,980 in Sinofibers Technology Co on October 29, 2024 and sell it today you would lose (91.00) from holding Sinofibers Technology Co or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAW Hotels Resorts vs. Sinofibers Technology Co
Performance |
| Timeline |
| SSAW Hotels Resorts |
| Sinofibers Technology |
SSAW Hotels and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAW Hotels and Sinofibers Technology
The main advantage of trading using opposite SSAW Hotels and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| SSAW Hotels vs. Bomesc Offshore Engineering | SSAW Hotels vs. Lier Chemical Co | SSAW Hotels vs. Dymatic Chemicals | SSAW Hotels vs. Hengli Petrochemical 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 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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