Correlation Between Sinofibers Technology and Hengkang Medical
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By analyzing existing cross correlation between Sinofibers Technology Co and Hengkang Medical Group, you can compare the effects of market volatilities on Sinofibers Technology and Hengkang Medical 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 Sinofibers Technology with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Hengkang Medical.
Diversification Opportunities for Sinofibers Technology and Hengkang Medical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinofibers and Hengkang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Sinofibers Technology 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 Sinofibers Technology Co are associated (or correlated) with Hengkang Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengkang Medical has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Hengkang Medical go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Hengkang Medical
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 0.58 times more return on investment than Hengkang Medical. However, Sinofibers Technology Co is 1.72 times less risky than Hengkang Medical. It trades about 0.24 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about 0.08 per unit of risk. If you would invest 2,727 in Sinofibers Technology Co on September 26, 2024 and sell it today you would earn a total of 288.00 from holding Sinofibers Technology Co or generate 10.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sinofibers Technology Co vs. Hengkang Medical Group
Performance |
Timeline |
Sinofibers Technology |
Hengkang Medical |
Sinofibers Technology and Hengkang Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinofibers Technology and Hengkang Medical
The main advantage of trading using opposite Sinofibers Technology and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Hengkang Medical 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 Hengkang Medical will offset losses from the drop in Hengkang Medical's long position.Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Shandong Gold Mining |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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