Correlation Between Cinda Securities and Sinocat Environmental
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By analyzing existing cross correlation between Cinda Securities Co and Sinocat Environmental Technology, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Sinocat Environmental.
Diversification Opportunities for Cinda Securities and Sinocat Environmental
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cinda and Sinocat is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities 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 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 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 Cinda Securities i.e., Cinda Securities and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Cinda Securities and Sinocat Environmental
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.37 times more return on investment than Sinocat Environmental. However, Cinda Securities Co is 2.69 times less risky than Sinocat Environmental. It trades about 0.18 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about 0.07 per unit of risk. If you would invest 1,467 in Cinda Securities Co on September 27, 2024 and sell it today you would earn a total of 105.00 from holding Cinda Securities Co or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Cinda Securities |
| Sinocat Environmental |
Cinda Securities and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Sinocat Environmental
The main advantage of trading using opposite Cinda Securities and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Contemporary Amperex Technology | Cinda Securities vs. G bits Network Technology | Cinda Securities vs. BYD Co Ltd |
| Sinocat Environmental vs. China Life Insurance | Sinocat Environmental vs. Cinda Securities Co | Sinocat Environmental vs. Piotech Inc A | Sinocat Environmental vs. Dongxing Sec Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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