Correlation Between Sobute New and Xinya Electronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sobute New Materials and Xinya Electronic Co, you can compare the effects of market volatilities on Sobute New and Xinya Electronic 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 Sobute New with a short position of Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sobute New and Xinya Electronic.
Diversification Opportunities for Sobute New and Xinya Electronic
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sobute and Xinya is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sobute New Materials and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic and Sobute New 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 Sobute New Materials are associated (or correlated) with Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Sobute New i.e., Sobute New and Xinya Electronic go up and down completely randomly.
Pair Corralation between Sobute New and Xinya Electronic
Assuming the 90 days trading horizon Sobute New Materials is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Sobute New Materials is 3.08 times less risky than Xinya Electronic. The stock trades about -0.15 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,496 in Xinya Electronic Co on October 24, 2024 and sell it today you would earn a total of 2.00 from holding Xinya Electronic Co or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sobute New Materials vs. Xinya Electronic Co
Performance |
| Timeline |
| Sobute New Materials |
| Xinya Electronic |
Sobute New and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sobute New and Xinya Electronic
The main advantage of trading using opposite Sobute New and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sobute New position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Sobute New vs. Xinya Electronic Co | Sobute New vs. Jiangyin Jianghua Microelectronics | Sobute New vs. Weihai Honglin Electronic | Sobute New vs. Wasu Media Holding |
| Xinya Electronic vs. Dazhong Transportation Group | Xinya Electronic vs. Hunan TV Broadcast | Xinya Electronic vs. Xinjiang Beixin RoadBridge | Xinya Electronic vs. Silkroad Visual Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |