Correlation Between Dongxing Sec and Sinocat Environmental
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By analyzing existing cross correlation between Dongxing Sec Co and Sinocat Environmental Technology, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Sinocat Environmental.
Diversification Opportunities for Dongxing Sec and Sinocat Environmental
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongxing and Sinocat is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Dongxing Sec and Sinocat Environmental
Assuming the 90 days trading horizon Dongxing Sec is expected to generate 1.3 times less return on investment than Sinocat Environmental. But when comparing it to its historical volatility, Dongxing Sec Co is 3.0 times less risky than Sinocat Environmental. It trades about 0.15 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,729 in Sinocat Environmental Technology on September 27, 2024 and sell it today you would earn a total of 79.00 from holding Sinocat Environmental Technology or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Dongxing Sec |
| Sinocat Environmental |
Dongxing Sec and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Sinocat Environmental
The main advantage of trading using opposite Dongxing Sec and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Contemporary Amperex Technology | Dongxing Sec vs. G bits Network Technology | Dongxing Sec 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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