Correlation Between Gem Year and Sinofibers Technology
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By analyzing existing cross correlation between Gem Year Industrial Co and Sinofibers Technology Co, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Sinofibers Technology.
Diversification Opportunities for Gem Year and Sinofibers Technology
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gem and Sinofibers is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial 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 Gem Year 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 Gem Year Industrial 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 Gem Year i.e., Gem Year and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Gem Year and Sinofibers Technology
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.84 times more return on investment than Sinofibers Technology. However, Gem Year Industrial Co is 1.19 times less risky than Sinofibers Technology. It trades about 0.03 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.16 per unit of risk. If you would invest 440.00 in Gem Year Industrial Co on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Gem Year Industrial Co or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Sinofibers Technology Co
Performance |
| Timeline |
| Gem Year Industrial |
| Sinofibers Technology |
Gem Year and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Sinofibers Technology
The main advantage of trading using opposite Gem Year and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. PetroChina Co Ltd | Gem Year vs. China Mobile Limited | Gem Year vs. CNOOC Limited | Gem Year vs. Ping An Insurance |
| Sinofibers Technology vs. Mengtian Home Group | Sinofibers Technology vs. Qtone Education Group | Sinofibers Technology vs. Time Publishing and | Sinofibers Technology vs. Dymatic Chemicals |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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