Correlation Between Sinofibers Technology and Eastroc Beverage
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By analyzing existing cross correlation between Sinofibers Technology Co and Eastroc Beverage Group, you can compare the effects of market volatilities on Sinofibers Technology and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Eastroc Beverage.
Diversification Opportunities for Sinofibers Technology and Eastroc Beverage
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinofibers and Eastroc is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Sinofibers Technology i.e., Sinofibers Technology and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Eastroc Beverage
Assuming the 90 days trading horizon Sinofibers Technology Co is expected to generate 1.96 times more return on investment than Eastroc Beverage. However, Sinofibers Technology is 1.96 times more volatile than Eastroc Beverage Group. It trades about 0.13 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.21 per unit of risk. If you would invest 2,210 in Sinofibers Technology Co on September 26, 2024 and sell it today you would earn a total of 805.00 from holding Sinofibers Technology Co or generate 36.43% 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. Eastroc Beverage Group
Performance |
Timeline |
Sinofibers Technology |
Eastroc Beverage |
Sinofibers Technology and Eastroc Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinofibers Technology and Eastroc Beverage
The main advantage of trading using opposite Sinofibers Technology and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage'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 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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