Correlation Between Linktel Technologies and Sinofibers Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Linktel Technologies Co and Sinofibers Technology Co, you can compare the effects of market volatilities on Linktel Technologies 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 Linktel Technologies with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linktel Technologies and Sinofibers Technology.
Diversification Opportunities for Linktel Technologies and Sinofibers Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Linktel and Sinofibers is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Linktel Technologies Co and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Linktel Technologies 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 Linktel Technologies Co 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 Linktel Technologies i.e., Linktel Technologies and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Linktel Technologies and Sinofibers Technology
Assuming the 90 days trading horizon Linktel Technologies is expected to generate 1.81 times less return on investment than Sinofibers Technology. In addition to that, Linktel Technologies is 3.58 times more volatile than Sinofibers Technology Co. It trades about 0.02 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.15 per unit of volatility. If you would invest 2,712 in Sinofibers Technology Co on November 7, 2024 and sell it today you would earn a total of 119.00 from holding Sinofibers Technology Co or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linktel Technologies Co vs. Sinofibers Technology Co
Performance |
| Timeline |
| Linktel Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Sinofibers Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Linktel Technologies and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linktel Technologies and Sinofibers Technology
The main advantage of trading using opposite Linktel Technologies and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linktel Technologies 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.The idea behind Linktel Technologies Co and Sinofibers Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |