Correlation Between Sinocelltech and Industrial
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By analyzing existing cross correlation between Sinocelltech Group and Industrial and Commercial, you can compare the effects of market volatilities on Sinocelltech and Industrial 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 Sinocelltech with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocelltech and Industrial.
Diversification Opportunities for Sinocelltech and Industrial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sinocelltech and Industrial is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sinocelltech Group and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Sinocelltech 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 Sinocelltech Group are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Sinocelltech i.e., Sinocelltech and Industrial go up and down completely randomly.
Pair Corralation between Sinocelltech and Industrial
Assuming the 90 days trading horizon Sinocelltech Group is expected to generate 1.17 times more return on investment than Industrial. However, Sinocelltech is 1.17 times more volatile than Industrial and Commercial. It trades about 0.44 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.06 per unit of risk. If you would invest 3,584 in Sinocelltech Group on November 27, 2024 and sell it today you would earn a total of 344.00 from holding Sinocelltech Group or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocelltech Group vs. Industrial and Commercial
Performance |
| Timeline |
| Sinocelltech Group |
| Industrial and Commercial |
Sinocelltech and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocelltech and Industrial
The main advantage of trading using opposite Sinocelltech and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocelltech position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Sinocelltech vs. Xiamen Insight Investment | Sinocelltech vs. Harson Trading China | Sinocelltech vs. Jiahe Foods Industry | Sinocelltech vs. Nuode Investment Co |
| Industrial vs. Zhengzhou Coal Mining | Industrial vs. Tibet Huayu Mining | Industrial vs. Dhc Software Co | Industrial vs. Linewell Software 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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