Correlation Between Hygon Information and Sinofibers Technology
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By analyzing existing cross correlation between Hygon Information Technology and Sinofibers Technology Co, you can compare the effects of market volatilities on Hygon Information 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 Hygon Information with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Sinofibers Technology.
Diversification Opportunities for Hygon Information and Sinofibers Technology
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hygon and Sinofibers is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Hygon Information 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 Hygon Information Technology 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 Hygon Information i.e., Hygon Information and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Hygon Information and Sinofibers Technology
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.08 times more return on investment than Sinofibers Technology. However, Hygon Information is 1.08 times more volatile than Sinofibers Technology Co. It trades about 0.11 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.03 per unit of risk. If you would invest 7,854 in Hygon Information Technology on October 12, 2024 and sell it today you would earn a total of 6,966 from holding Hygon Information Technology or generate 88.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Sinofibers Technology Co
Performance |
| Timeline |
| Hygon Information |
| Sinofibers Technology |
Hygon Information and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Sinofibers Technology
The main advantage of trading using opposite Hygon Information and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information 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.| Hygon Information vs. Duzhe Publishing Media | Hygon Information vs. Beijing Enlight Media | Hygon Information vs. Xinjiang Baodi Mining | Hygon Information vs. Guangzhou Jinyi Media |
| Sinofibers Technology vs. V V Food | Sinofibers Technology vs. Guangdong Silvere Sci | Sinofibers Technology vs. Qingdao Foods Co | Sinofibers Technology vs. New Hope Dairy |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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