Correlation Between Shandong and Sinocat Environmental
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By analyzing existing cross correlation between Shandong Hi Speed RoadBridge and Sinocat Environmental Technology, you can compare the effects of market volatilities on Shandong and Sinocat Environmental 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 Shandong with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong and Sinocat Environmental.
Diversification Opportunities for Shandong and Sinocat Environmental
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Sinocat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hi Speed RoadBridge and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and Shandong 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 Shandong Hi Speed RoadBridge are associated (or correlated) with Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of Shandong i.e., Shandong and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Shandong and Sinocat Environmental
Assuming the 90 days trading horizon Shandong Hi Speed RoadBridge is expected to under-perform the Sinocat Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Hi Speed RoadBridge is 1.56 times less risky than Sinocat Environmental. The stock trades about 0.0 of its potential returns per unit of risk. The Sinocat Environmental Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,644 in Sinocat Environmental Technology on August 29, 2024 and sell it today you would earn a total of 85.00 from holding Sinocat Environmental Technology or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Hi Speed RoadBridge vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Shandong Hi Speed |
| Sinocat Environmental |
Shandong and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong and Sinocat Environmental
The main advantage of trading using opposite Shandong and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| Shandong vs. Ming Yang Smart | Shandong vs. 159681 | Shandong vs. 159005 | Shandong vs. Loctek Ergonomic Technology |
| Sinocat Environmental vs. Loongson Technology Corp | Sinocat Environmental vs. Chongqing Road Bridge | Sinocat Environmental vs. Shenzhen Fortune Trend | Sinocat Environmental vs. Wuhan Xianglong Power |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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