Correlation Between Shantou Wanshun and Sinocat Environmental
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By analyzing existing cross correlation between Shantou Wanshun Package and Sinocat Environmental Technology, you can compare the effects of market volatilities on Shantou Wanshun 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 Shantou Wanshun with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Sinocat Environmental.
Diversification Opportunities for Shantou Wanshun and Sinocat Environmental
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shantou and Sinocat is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and Shantou Wanshun 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 Shantou Wanshun Package 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 Shantou Wanshun i.e., Shantou Wanshun and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Sinocat Environmental
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 0.58 times more return on investment than Sinocat Environmental. However, Shantou Wanshun Package is 1.71 times less risky than Sinocat Environmental. It trades about -0.31 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.33 per unit of risk. If you would invest 555.00 in Shantou Wanshun Package on October 17, 2024 and sell it today you would lose (91.00) from holding Shantou Wanshun Package or give up 16.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Shantou Wanshun Package |
| Sinocat Environmental |
Shantou Wanshun and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Sinocat Environmental
The main advantage of trading using opposite Shantou Wanshun and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun 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.| Shantou Wanshun vs. Easyhome New Retail | Shantou Wanshun vs. Mango Excellent Media | Shantou Wanshun vs. Arrow Home Group | Shantou Wanshun vs. Beijing Kingsoft Office |
| Sinocat Environmental vs. Citic Offshore Helicopter | Sinocat Environmental vs. Anji Foodstuff Co | Sinocat Environmental vs. StarPower Semiconductor | Sinocat Environmental vs. Shantou Wanshun Package |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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