Correlation Between GreenTech Environmental and Sichuan Jinshi
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By analyzing existing cross correlation between GreenTech Environmental Co and Sichuan Jinshi Technology, you can compare the effects of market volatilities on GreenTech Environmental and Sichuan Jinshi 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 GreenTech Environmental with a short position of Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTech Environmental and Sichuan Jinshi.
Diversification Opportunities for GreenTech Environmental and Sichuan Jinshi
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GreenTech and Sichuan is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding GreenTech Environmental Co and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology and GreenTech Environmental 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 GreenTech Environmental Co are associated (or correlated) with Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of GreenTech Environmental i.e., GreenTech Environmental and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between GreenTech Environmental and Sichuan Jinshi
Assuming the 90 days trading horizon GreenTech Environmental Co is expected to generate 1.18 times more return on investment than Sichuan Jinshi. However, GreenTech Environmental is 1.18 times more volatile than Sichuan Jinshi Technology. It trades about 0.01 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.03 per unit of risk. If you would invest 1,540 in GreenTech Environmental Co on November 5, 2024 and sell it today you would lose (155.00) from holding GreenTech Environmental Co or give up 10.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTech Environmental Co vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| GreenTech Environmental |
| Sichuan Jinshi Technology |
GreenTech Environmental and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTech Environmental and Sichuan Jinshi
The main advantage of trading using opposite GreenTech Environmental and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTech Environmental position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| GreenTech Environmental vs. Ming Yang Smart | GreenTech Environmental vs. 159681 | GreenTech Environmental vs. 159005 | GreenTech Environmental vs. Loctek Ergonomic Technology |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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