Correlation Between Guangzhou Fangbang and Sinofibers Technology
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By analyzing existing cross correlation between Guangzhou Fangbang Electronics and Sinofibers Technology Co, you can compare the effects of market volatilities on Guangzhou Fangbang 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 Guangzhou Fangbang with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Fangbang and Sinofibers Technology.
Diversification Opportunities for Guangzhou Fangbang and Sinofibers Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Sinofibers is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Fangbang Electronics and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Guangzhou Fangbang 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 Guangzhou Fangbang Electronics 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 Guangzhou Fangbang i.e., Guangzhou Fangbang and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Guangzhou Fangbang and Sinofibers Technology
Assuming the 90 days trading horizon Guangzhou Fangbang is expected to generate 1.67 times less return on investment than Sinofibers Technology. In addition to that, Guangzhou Fangbang is 1.18 times more volatile than Sinofibers Technology Co. It trades about 0.05 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.09 per unit of volatility. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Fangbang Electronics vs. Sinofibers Technology Co
Performance |
| Timeline |
| Guangzhou Fangbang |
| Sinofibers Technology |
Guangzhou Fangbang and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Fangbang and Sinofibers Technology
The main advantage of trading using opposite Guangzhou Fangbang and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Fangbang 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.| Guangzhou Fangbang vs. Industrial and Commercial | Guangzhou Fangbang vs. China Construction Bank | Guangzhou Fangbang vs. Agricultural Bank of | Guangzhou Fangbang vs. Bank of China |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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