Correlation Between Changjiang Jinggong and Sinocat Environmental
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Sinocat Environmental Technology, you can compare the effects of market volatilities on Changjiang Jinggong 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 Changjiang Jinggong with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Sinocat Environmental.
Diversification Opportunities for Changjiang Jinggong and Sinocat Environmental
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changjiang and Sinocat is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and Changjiang Jinggong 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 Changjiang Jinggong Steel 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 Changjiang Jinggong i.e., Changjiang Jinggong and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Sinocat Environmental
Assuming the 90 days trading horizon Changjiang Jinggong is expected to generate 2.7 times less return on investment than Sinocat Environmental. But when comparing it to its historical volatility, Changjiang Jinggong Steel is 1.98 times less risky than Sinocat Environmental. It trades about 0.06 of its potential returns per unit of risk. 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 |
Changjiang Jinggong Steel vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Sinocat Environmental |
Changjiang Jinggong and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Sinocat Environmental
The main advantage of trading using opposite Changjiang Jinggong and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong 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.| Changjiang Jinggong vs. Ming Yang Smart | Changjiang Jinggong vs. 159681 | Changjiang Jinggong vs. 159005 | Changjiang Jinggong 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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