Correlation Between Sinocat Environmental and Asia Potash
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By analyzing existing cross correlation between Sinocat Environmental Technology and Asia Potash International, you can compare the effects of market volatilities on Sinocat Environmental and Asia Potash 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 Asia Potash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Asia Potash.
Diversification Opportunities for Sinocat Environmental and Asia Potash
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinocat and Asia is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Asia Potash International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Potash International 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 Asia Potash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Potash International has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Asia Potash go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Asia Potash
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 1.15 times more return on investment than Asia Potash. However, Sinocat Environmental is 1.15 times more volatile than Asia Potash International. It trades about 0.07 of its potential returns per unit of risk. Asia Potash International is currently generating about 0.06 per unit of risk. If you would invest 1,683 in Sinocat Environmental Technology on September 5, 2024 and sell it today you would earn a total of 416.00 from holding Sinocat Environmental Technology or generate 24.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Asia Potash International
Performance |
| Timeline |
| Sinocat Environmental |
| Asia Potash International |
Sinocat Environmental and Asia Potash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Asia Potash
The main advantage of trading using opposite Sinocat Environmental and Asia Potash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Asia Potash 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 Asia Potash will offset losses from the drop in Asia Potash's long position.| Sinocat Environmental vs. Cultural Investment Holdings | Sinocat Environmental vs. Gome Telecom Equipment | Sinocat Environmental vs. Bus Online Co | Sinocat Environmental vs. Holitech Technology Co |
| Asia Potash vs. Elite Color Environmental | Asia Potash vs. Nexchip Semiconductor Corp | Asia Potash vs. Vontron Technology Co | Asia Potash vs. Sinocat Environmental Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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