Correlation Between Tibet Huayu and Sinofibers Technology
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By analyzing existing cross correlation between Tibet Huayu Mining and Sinofibers Technology Co, you can compare the effects of market volatilities on Tibet Huayu 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 Tibet Huayu with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Sinofibers Technology.
Diversification Opportunities for Tibet Huayu and Sinofibers Technology
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tibet and Sinofibers is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Tibet Huayu 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 Tibet Huayu Mining 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 Tibet Huayu i.e., Tibet Huayu and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Tibet Huayu and Sinofibers Technology
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.17 times more return on investment than Sinofibers Technology. However, Tibet Huayu is 1.17 times more volatile than Sinofibers Technology Co. It trades about 0.03 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 972.00 in Tibet Huayu Mining on October 13, 2024 and sell it today you would earn a total of 231.00 from holding Tibet Huayu Mining or generate 23.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Sinofibers Technology Co
Performance |
| Timeline |
| Tibet Huayu Mining |
| Sinofibers Technology |
Tibet Huayu and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Sinofibers Technology
The main advantage of trading using opposite Tibet Huayu and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu 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.| Tibet Huayu vs. Muyuan Foodstuff Co | Tibet Huayu vs. Ningbo Tip Rubber | Tibet Huayu vs. Jinsanjiang Silicon Material | Tibet Huayu vs. Guangzhou Tinci Materials |
| Sinofibers Technology vs. Anhui Xinhua Media | Sinofibers Technology vs. Thinkingdom Media Group | Sinofibers Technology vs. Easyhome New Retail | Sinofibers Technology vs. Zhongyin Babi Food |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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