Correlation Between RoadMain T and Sinofibers Technology
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By analyzing existing cross correlation between RoadMain T Co and Sinofibers Technology Co, you can compare the effects of market volatilities on RoadMain T 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 RoadMain T with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and Sinofibers Technology.
Diversification Opportunities for RoadMain T and Sinofibers Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between RoadMain and Sinofibers is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T 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 RoadMain T 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 RoadMain T 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 RoadMain T i.e., RoadMain T and Sinofibers Technology go up and down completely randomly.
Pair Corralation between RoadMain T and Sinofibers Technology
Assuming the 90 days trading horizon RoadMain T Co is expected to under-perform the Sinofibers Technology. In addition to that, RoadMain T is 1.51 times more volatile than Sinofibers Technology Co. It trades about -0.04 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.23 per unit of volatility. If you would invest 2,672 in Sinofibers Technology Co on September 27, 2024 and sell it today you would earn a total of 275.00 from holding Sinofibers Technology Co or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RoadMain T Co vs. Sinofibers Technology Co
Performance |
| Timeline |
| RoadMain T |
| Sinofibers Technology |
RoadMain T and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and Sinofibers Technology
The main advantage of trading using opposite RoadMain T and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T 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.| RoadMain T vs. Ming Yang Smart | RoadMain T vs. 159681 | RoadMain T vs. 159005 | RoadMain T vs. Loctek Ergonomic Technology |
| Sinofibers Technology vs. RoadMain T Co | Sinofibers Technology vs. Jilin Jlu Communication | Sinofibers Technology vs. Xinjiang Communications Construction | Sinofibers Technology vs. Haima Automobile Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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