Correlation Between Changchun BCHT and Sinofibers Technology
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Sinofibers Technology Co, you can compare the effects of market volatilities on Changchun BCHT 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 Changchun BCHT with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Sinofibers Technology.
Diversification Opportunities for Changchun BCHT and Sinofibers Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and Sinofibers is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Changchun BCHT 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 Changchun BCHT Biotechnology 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 Changchun BCHT i.e., Changchun BCHT and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Changchun BCHT and Sinofibers Technology
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Sinofibers Technology. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 1.22 times less risky than Sinofibers Technology. The stock trades about -0.4 of its potential returns per unit of risk. The Sinofibers Technology Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 2,980 in Sinofibers Technology Co on October 29, 2024 and sell it today you would lose (91.00) from holding Sinofibers Technology Co or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Sinofibers Technology Co
Performance |
| Timeline |
| Changchun BCHT Biote |
| Sinofibers Technology |
Changchun BCHT and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Sinofibers Technology
The main advantage of trading using opposite Changchun BCHT and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT 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.| Changchun BCHT vs. Sunny Loan Top | Changchun BCHT vs. TongFu Microelectronics Co | Changchun BCHT vs. Weihai Honglin Electronic | Changchun BCHT vs. Xiangyang Automobile Bearing |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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