Correlation Between Sinocat Environmental and Tongling Nonferrous
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By analyzing existing cross correlation between Sinocat Environmental Technology and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Sinocat Environmental and Tongling Nonferrous 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 Sinocat Environmental with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Tongling Nonferrous.
Diversification Opportunities for Sinocat Environmental and Tongling Nonferrous
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinocat and Tongling is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Sinocat 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 Sinocat Environmental Technology are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Tongling Nonferrous
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the Tongling Nonferrous. In addition to that, Sinocat Environmental is 3.56 times more volatile than Tongling Nonferrous Metals. It trades about -0.29 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.3 per unit of volatility. If you would invest 349.00 in Tongling Nonferrous Metals on October 7, 2024 and sell it today you would lose (28.00) from holding Tongling Nonferrous Metals or give up 8.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Sinocat Environmental |
| Tongling Nonferrous |
Sinocat Environmental and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Tongling Nonferrous
The main advantage of trading using opposite Sinocat Environmental and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Sinocat Environmental vs. Agricultural Bank of | Sinocat Environmental vs. Postal Savings Bank | Sinocat Environmental vs. Gansu Jiu Steel | Sinocat Environmental vs. Shandong Mining Machinery |
| Tongling Nonferrous vs. Zijin Mining Group | Tongling Nonferrous vs. Wanhua Chemical Group | Tongling Nonferrous vs. Baoshan Iron Steel | Tongling Nonferrous vs. Hoshine Silicon Ind |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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