Correlation Between Sinocat Environmental and Tieling Newcity
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By analyzing existing cross correlation between Sinocat Environmental Technology and Tieling Newcity Investment, you can compare the effects of market volatilities on Sinocat Environmental and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Tieling Newcity.
Diversification Opportunities for Sinocat Environmental and Tieling Newcity
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinocat and Tieling is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Tieling Newcity go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Tieling Newcity
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the Tieling Newcity. In addition to that, Sinocat Environmental is 1.2 times more volatile than Tieling Newcity Investment. It trades about -0.01 of its total potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.01 per unit of volatility. If you would invest 309.00 in Tieling Newcity Investment on September 26, 2024 and sell it today you would lose (18.00) from holding Tieling Newcity Investment or give up 5.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Tieling Newcity Investment
Performance |
| Timeline |
| Sinocat Environmental |
| Tieling Newcity Inve |
Sinocat Environmental and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Tieling Newcity
The main advantage of trading using opposite Sinocat Environmental and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Sinocat Environmental vs. China Life Insurance | Sinocat Environmental vs. Cinda Securities Co | Sinocat Environmental vs. Piotech Inc A | Sinocat Environmental vs. Dongxing Sec Co |
| Tieling Newcity vs. Industrial and Commercial | Tieling Newcity vs. Agricultural Bank of | Tieling Newcity vs. China Construction Bank | Tieling Newcity vs. Bank of China |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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