Correlation Between Industrial and Sinocat Environmental
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By analyzing existing cross correlation between Industrial and Commercial and Sinocat Environmental Technology, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Sinocat Environmental.
Diversification Opportunities for Industrial and Sinocat Environmental
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Sinocat is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Industrial and Sinocat Environmental
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.37 times more return on investment than Sinocat Environmental. However, Industrial and Commercial is 2.68 times less risky than Sinocat Environmental. It trades about 0.08 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about 0.0 per unit of risk. If you would invest 402.00 in Industrial and Commercial on September 4, 2024 and sell it today you would earn a total of 211.00 from holding Industrial and Commercial or generate 52.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Industrial and Commercial |
| Sinocat Environmental |
Industrial and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Sinocat Environmental
The main advantage of trading using opposite Industrial and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. China Life Insurance | Industrial vs. Shenzhen MYS Environmental | Industrial vs. Anhui Fuhuang Steel | Industrial vs. China Sports Industry |
| Sinocat Environmental vs. Saurer Intelligent Technology | Sinocat Environmental vs. Dhc Software Co | Sinocat Environmental vs. Sinofibers Technology Co | Sinocat Environmental vs. Holitech Technology 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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