Correlation Between Sinofibers Technology and Anker Innovations

Can any of the company-specific risk be diversified away by investing in both Sinofibers Technology and Anker Innovations at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sinofibers Technology and Anker Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sinofibers Technology Co and Anker Innovations Technology, you can compare the effects of market volatilities on Sinofibers Technology and Anker Innovations 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 Anker Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Anker Innovations.

Diversification Opportunities for Sinofibers Technology and Anker Innovations

0.0

Correlation Coefficient

Sinofibers Technology  Anker Innovations

Pay attention - limited upside

The 3 months correlation between Sinofibers and Anker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Anker Innovations Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anker Innovations 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 Anker Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anker Innovations has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Anker Innovations go up and down completely randomly.

Pair Corralation between Sinofibers Technology and Anker Innovations

If you would invest  0.00  in Anker Innovations Technology on October 24, 2024 and sell it today you would earn a total of  0.00  from holding Anker Innovations Technology or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Sinofibers Technology Co  vs.  Anker Innovations Technology

Sinofibers Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sinofibers Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sinofibers Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Anker Innovations

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Anker Innovations Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Anker Innovations is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sinofibers Technology and Anker Innovations

The main advantage of trading using opposite Sinofibers Technology and Anker Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Anker Innovations 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 Anker Innovations will offset losses from the drop in Anker Innovations' long position.

The idea behind Sinofibers Technology Co and Anker Innovations Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.