Correlation Between Industrial Securities and Sinofibers Technology
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By analyzing existing cross correlation between Industrial Securities Co and Sinofibers Technology Co, you can compare the effects of market volatilities on Industrial Securities 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 Industrial Securities with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Securities and Sinofibers Technology.
Diversification Opportunities for Industrial Securities and Sinofibers Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Industrial and Sinofibers is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Securities 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 Industrial Securities 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 Industrial Securities 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 Industrial Securities i.e., Industrial Securities and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Industrial Securities and Sinofibers Technology
Assuming the 90 days trading horizon Industrial Securities Co is expected to generate 0.59 times more return on investment than Sinofibers Technology. However, Industrial Securities Co is 1.7 times less risky than Sinofibers Technology. It trades about -0.13 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 681.00 in Industrial Securities Co on September 13, 2024 and sell it today you would lose (28.00) from holding Industrial Securities Co or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Industrial Securities Co vs. Sinofibers Technology Co
Performance |
| Timeline |
| Industrial Securities |
| Sinofibers Technology |
Industrial Securities and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Securities and Sinofibers Technology
The main advantage of trading using opposite Industrial Securities and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Securities 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.| Industrial Securities vs. AUPU Home Style | Industrial Securities vs. Hubei Xingfa Chemicals | Industrial Securities vs. CSSC Offshore Marine | Industrial Securities vs. Hunan Mendale Hometextile |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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