Correlation Between Hangzhou Minsheng and Sinofibers Technology
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By analyzing existing cross correlation between Hangzhou Minsheng Healthcare and Sinofibers Technology Co, you can compare the effects of market volatilities on Hangzhou Minsheng 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 Hangzhou Minsheng with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Minsheng and Sinofibers Technology.
Diversification Opportunities for Hangzhou Minsheng and Sinofibers Technology
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Sinofibers is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Minsheng Healthcare and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Hangzhou Minsheng 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 Hangzhou Minsheng Healthcare 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 Hangzhou Minsheng i.e., Hangzhou Minsheng and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Hangzhou Minsheng and Sinofibers Technology
Assuming the 90 days trading horizon Hangzhou Minsheng Healthcare is expected to under-perform the Sinofibers Technology. In addition to that, Hangzhou Minsheng is 1.13 times more volatile than Sinofibers Technology Co. It trades about -0.06 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.03 per unit of volatility. If you would invest 4,509 in Sinofibers Technology Co on September 4, 2024 and sell it today you would lose (1,773) from holding Sinofibers Technology Co or give up 39.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 83.57% |
| Values | Daily Returns |
Hangzhou Minsheng Healthcare vs. Sinofibers Technology Co
Performance |
| Timeline |
| Hangzhou Minsheng |
| Sinofibers Technology |
Hangzhou Minsheng and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Minsheng and Sinofibers Technology
The main advantage of trading using opposite Hangzhou Minsheng and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Minsheng 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.| Hangzhou Minsheng vs. Chengdu Xingrong Investment | Hangzhou Minsheng vs. Nexchip Semiconductor Corp | Hangzhou Minsheng vs. Zoje Resources Investment | Hangzhou Minsheng vs. Guangdong Marubi Biotechnology |
| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Shandong Gold Mining |
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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