Correlation Between Xilong Chemical and Sinocat Environmental
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By analyzing existing cross correlation between Xilong Chemical Co and Sinocat Environmental Technology, you can compare the effects of market volatilities on Xilong Chemical 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 Xilong Chemical with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Sinocat Environmental.
Diversification Opportunities for Xilong Chemical and Sinocat Environmental
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xilong and Sinocat is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and Xilong Chemical 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 Xilong Chemical Co 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 Xilong Chemical i.e., Xilong Chemical and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Xilong Chemical and Sinocat Environmental
Assuming the 90 days trading horizon Xilong Chemical Co is expected to generate 0.83 times more return on investment than Sinocat Environmental. However, Xilong Chemical Co is 1.2 times less risky than Sinocat Environmental. It trades about 0.03 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.16 per unit of risk. If you would invest 788.00 in Xilong Chemical Co on October 22, 2024 and sell it today you would earn a total of 8.00 from holding Xilong Chemical Co or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilong Chemical Co vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Xilong Chemical |
| Sinocat Environmental |
Xilong Chemical and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Sinocat Environmental
The main advantage of trading using opposite Xilong Chemical and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical 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.| Xilong Chemical vs. Dymatic Chemicals | Xilong Chemical vs. Beijing Mainstreets Investment | Xilong Chemical vs. Vanfund Urban Investment | Xilong Chemical vs. Juneyao Airlines |
| Sinocat Environmental vs. Xilong Chemical Co | Sinocat Environmental vs. Oppein Home Group | Sinocat Environmental vs. Shandong Homey Aquatic | Sinocat Environmental vs. Hunan Mendale Hometextile |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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