Correlation Between State Grid and Sinofibers Technology
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By analyzing existing cross correlation between State Grid InformationCommunication and Sinofibers Technology Co, you can compare the effects of market volatilities on State Grid 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 State Grid with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Sinofibers Technology.
Diversification Opportunities for State Grid and Sinofibers Technology
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Sinofibers is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and State Grid 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 State Grid InformationCommunication 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 State Grid i.e., State Grid and Sinofibers Technology go up and down completely randomly.
Pair Corralation between State Grid and Sinofibers Technology
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 0.94 times more return on investment than Sinofibers Technology. However, State Grid InformationCommunication is 1.07 times less risky than Sinofibers Technology. It trades about 0.02 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.04 per unit of risk. If you would invest 1,700 in State Grid InformationCommunication on October 16, 2024 and sell it today you would earn a total of 49.00 from holding State Grid InformationCommunication or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Sinofibers Technology Co
Performance |
| Timeline |
| State Grid Informati |
| Sinofibers Technology |
State Grid and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Sinofibers Technology
The main advantage of trading using opposite State Grid and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid 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.| State Grid vs. Guizhou Chanhen Chemical | State Grid vs. Telling Telecommunication Holding | State Grid vs. Hengli Petrochemical Co | State Grid vs. Xiangyang Automobile Bearing |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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