Correlation Between Xinya Electronic and Sinofibers Technology
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By analyzing existing cross correlation between Xinya Electronic Co and Sinofibers Technology Co, you can compare the effects of market volatilities on Xinya Electronic 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 Xinya Electronic with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Sinofibers Technology.
Diversification Opportunities for Xinya Electronic and Sinofibers Technology
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinya and Sinofibers is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic 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 Xinya Electronic 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 Xinya Electronic 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 Xinya Electronic i.e., Xinya Electronic and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Xinya Electronic and Sinofibers Technology
Assuming the 90 days trading horizon Xinya Electronic is expected to generate 1.74 times less return on investment than Sinofibers Technology. But when comparing it to its historical volatility, Xinya Electronic Co is 1.34 times less risky than Sinofibers Technology. It trades about 0.07 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,126 in Sinofibers Technology Co on September 27, 2024 and sell it today you would earn a total of 821.00 from holding Sinofibers Technology Co or generate 38.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. Sinofibers Technology Co
Performance |
| Timeline |
| Xinya Electronic |
| Sinofibers Technology |
Xinya Electronic and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Sinofibers Technology
The main advantage of trading using opposite Xinya Electronic and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic 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.| Xinya Electronic vs. Shengtak New Material | Xinya Electronic vs. Ningxia Building Materials | Xinya Electronic vs. Jiugui Liquor Co | Xinya Electronic vs. Shenzhen SDG Information |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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