Correlation Between Shanghai Action and Sinocat Environmental
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By analyzing existing cross correlation between Shanghai Action Education and Sinocat Environmental Technology, you can compare the effects of market volatilities on Shanghai Action 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 Shanghai Action with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Sinocat Environmental.
Diversification Opportunities for Shanghai Action and Sinocat Environmental
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Sinocat is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and Shanghai Action 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 Shanghai Action Education 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 Shanghai Action i.e., Shanghai Action and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Shanghai Action and Sinocat Environmental
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 0.54 times more return on investment than Sinocat Environmental. However, Shanghai Action Education is 1.84 times less risky than Sinocat Environmental. It trades about -0.07 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.33 per unit of risk. If you would invest 3,711 in Shanghai Action Education on October 17, 2024 and sell it today you would lose (160.00) from holding Shanghai Action Education or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Shanghai Action Education |
| Sinocat Environmental |
Shanghai Action and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Sinocat Environmental
The main advantage of trading using opposite Shanghai Action and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action 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.| Shanghai Action vs. Xiangyu Medical Co | Shanghai Action vs. Guangdong Jingyi Metal | Shanghai Action vs. Winner Medical Co | Shanghai Action vs. Rising Nonferrous Metals |
| Sinocat Environmental vs. Citic Offshore Helicopter | Sinocat Environmental vs. Anji Foodstuff Co | Sinocat Environmental vs. StarPower Semiconductor | Sinocat Environmental vs. Shantou Wanshun Package |
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 Stocks Directory module to find actively traded stocks across global markets.
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