Correlation Between Cinda Securities and Sinosteel Engineering
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By analyzing existing cross correlation between Cinda Securities Co and Sinosteel Engineering and, you can compare the effects of market volatilities on Cinda Securities and Sinosteel Engineering 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 Cinda Securities with a short position of Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Sinosteel Engineering.
Diversification Opportunities for Cinda Securities and Sinosteel Engineering
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and Sinosteel is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Cinda Securities i.e., Cinda Securities and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Cinda Securities and Sinosteel Engineering
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Sinosteel Engineering. In addition to that, Cinda Securities is 1.19 times more volatile than Sinosteel Engineering and. It trades about -0.13 of its total potential returns per unit of risk. Sinosteel Engineering and is currently generating about -0.08 per unit of volatility. If you would invest 721.00 in Sinosteel Engineering and on September 12, 2024 and sell it today you would lose (24.00) from holding Sinosteel Engineering and or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Sinosteel Engineering and
Performance |
| Timeline |
| Cinda Securities |
| Sinosteel Engineering and |
Cinda Securities and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Sinosteel Engineering
The main advantage of trading using opposite Cinda Securities and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| Cinda Securities vs. China Petroleum Chemical | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. China Mobile Limited | Cinda Securities vs. Industrial and Commercial |
| Sinosteel Engineering vs. Agricultural Bank of | Sinosteel Engineering vs. Industrial and Commercial | Sinosteel Engineering vs. Bank of China | Sinosteel Engineering vs. PetroChina Co Ltd |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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