Correlation Between Shanghai Broadband and Sinofibers Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Broadband Technology and Sinofibers Technology Co, you can compare the effects of market volatilities on Shanghai Broadband 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 Shanghai Broadband with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Sinofibers Technology.
Diversification Opportunities for Shanghai Broadband and Sinofibers Technology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Sinofibers is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Shanghai Broadband 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 Shanghai Broadband Technology 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 Shanghai Broadband i.e., Shanghai Broadband and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Sinofibers Technology
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 1.14 times more return on investment than Sinofibers Technology. However, Shanghai Broadband is 1.14 times more volatile than Sinofibers Technology Co. It trades about 0.11 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.26 per unit of risk. If you would invest 365.00 in Shanghai Broadband Technology on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Shanghai Broadband Technology or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Sinofibers Technology Co
Performance |
| Timeline |
| Shanghai Broadband |
| Sinofibers Technology |
Shanghai Broadband and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Sinofibers Technology
The main advantage of trading using opposite Shanghai Broadband and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband 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.| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |