Correlation Between Shanghai Rongtai and Sinofibers Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Rongtai Health and Sinofibers Technology Co, you can compare the effects of market volatilities on Shanghai Rongtai 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 Rongtai with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Sinofibers Technology.
Diversification Opportunities for Shanghai Rongtai and Sinofibers Technology
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Sinofibers is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health 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 Rongtai 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 Rongtai Health 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 Rongtai i.e., Shanghai Rongtai and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Sinofibers Technology
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to under-perform the Sinofibers Technology. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Rongtai Health is 1.25 times less risky than Sinofibers Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Sinofibers Technology Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,321 in Sinofibers Technology Co on October 18, 2024 and sell it today you would earn a total of 373.00 from holding Sinofibers Technology Co or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Sinofibers Technology Co
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Sinofibers Technology |
Shanghai Rongtai and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Sinofibers Technology
The main advantage of trading using opposite Shanghai Rongtai and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai 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 Rongtai vs. Shaanxi Meineng Clean | Shanghai Rongtai vs. Shanghai V Test Semiconductor | Shanghai Rongtai vs. Ingenic Semiconductor | Shanghai Rongtai vs. State Grid InformationCommunication |
| Sinofibers Technology vs. Guangdong Wens Foodstuff | Sinofibers Technology vs. Hainan Haiqi Transportation | Sinofibers Technology vs. Jiahe Foods Industry | Sinofibers Technology vs. China Sports Industry |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |