Correlation Between Sinocat Environmental and Invengo Information
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By analyzing existing cross correlation between Sinocat Environmental Technology and Invengo Information Technology, you can compare the effects of market volatilities on Sinocat Environmental and Invengo Information 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 Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Invengo Information.
Diversification Opportunities for Sinocat Environmental and Invengo Information
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinocat and Invengo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information 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 Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Invengo Information go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Invengo Information
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 0.61 times more return on investment than Invengo Information. However, Sinocat Environmental Technology is 1.63 times less risky than Invengo Information. It trades about 0.34 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.06 per unit of risk. If you would invest 1,545 in Sinocat Environmental Technology on September 1, 2024 and sell it today you would earn a total of 440.00 from holding Sinocat Environmental Technology or generate 28.48% 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. Invengo Information Technology
Performance |
| Timeline |
| Sinocat Environmental |
| Invengo Information |
Sinocat Environmental and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Invengo Information
The main advantage of trading using opposite Sinocat Environmental and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Sinocat Environmental vs. Invengo Information Technology | Sinocat Environmental vs. Ping An Insurance | Sinocat Environmental vs. CITIC Guoan Information | Sinocat Environmental vs. Unisplendour Corp |
| Invengo Information vs. Western Mining Co | Invengo Information vs. Jiangxi Naipu Mining | Invengo Information vs. Chenzhou Jingui Silver | Invengo Information vs. Chengtun Mining Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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