Correlation Between CITIC Guoan and Sinocat Environmental
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By analyzing existing cross correlation between CITIC Guoan Information and Sinocat Environmental Technology, you can compare the effects of market volatilities on CITIC Guoan 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 CITIC Guoan with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Sinocat Environmental.
Diversification Opportunities for CITIC Guoan and Sinocat Environmental
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Sinocat is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and CITIC Guoan 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 CITIC Guoan Information 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 CITIC Guoan i.e., CITIC Guoan and Sinocat Environmental go up and down completely randomly.
Pair Corralation between CITIC Guoan and Sinocat Environmental
Assuming the 90 days trading horizon CITIC Guoan is expected to generate 5.79 times less return on investment than Sinocat Environmental. In addition to that, CITIC Guoan is 1.1 times more volatile than Sinocat Environmental Technology. It trades about 0.06 of its total potential returns per unit of risk. Sinocat Environmental Technology is currently generating about 0.39 per unit of volatility. If you would invest 1,516 in Sinocat Environmental Technology on September 3, 2024 and sell it today you would earn a total of 469.00 from holding Sinocat Environmental Technology or generate 30.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| CITIC Guoan Information |
| Sinocat Environmental |
CITIC Guoan and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Sinocat Environmental
The main advantage of trading using opposite CITIC Guoan and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan 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.| CITIC Guoan vs. Gansu Jiu Steel | CITIC Guoan vs. Ming Yang Smart | CITIC Guoan vs. Aba Chemicals Corp | CITIC Guoan vs. Loctek Ergonomic Technology |
| Sinocat Environmental vs. PetroChina Co Ltd | Sinocat Environmental vs. China Mobile Limited | Sinocat Environmental vs. Industrial and Commercial | Sinocat Environmental vs. China Life Insurance |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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