Correlation Between Sinocat Environmental and Shenzhen MYS
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By analyzing existing cross correlation between Sinocat Environmental Technology and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Sinocat Environmental and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Shenzhen MYS.
Diversification Opportunities for Sinocat Environmental and Shenzhen MYS
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinocat and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Shenzhen MYS
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 2.62 times more return on investment than Shenzhen MYS. However, Sinocat Environmental is 2.62 times more volatile than Shenzhen MYS Environmental. It trades about 0.21 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.01 per unit of risk. If you would invest 1,682 in Sinocat Environmental Technology on November 29, 2024 and sell it today you would earn a total of 235.00 from holding Sinocat Environmental Technology or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Sinocat Environmental |
| Shenzhen MYS Environ |
Sinocat Environmental and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Shenzhen MYS
The main advantage of trading using opposite Sinocat Environmental and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Sinocat Environmental vs. National Silicon Industry | Sinocat Environmental vs. Jiujiang Shanshui Technology | Sinocat Environmental vs. Lier Chemical Co | Sinocat Environmental vs. Nanning Chemical Industry |
| Shenzhen MYS vs. Chenzhou Jingui Silver | Shenzhen MYS vs. Xuzhou Handler Special | Shenzhen MYS vs. JCHX Mining Management | Shenzhen MYS vs. Zotye Automobile 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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