Correlation Between Sinocat Environmental and Beijing SPC
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By analyzing existing cross correlation between Sinocat Environmental Technology and Beijing SPC Environment, you can compare the effects of market volatilities on Sinocat Environmental and Beijing SPC 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 Beijing SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Beijing SPC.
Diversification Opportunities for Sinocat Environmental and Beijing SPC
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinocat and Beijing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment 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 Beijing SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Beijing SPC go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Beijing SPC
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 1.95 times more return on investment than Beijing SPC. However, Sinocat Environmental is 1.95 times more volatile than Beijing SPC Environment. It trades about 0.08 of its potential returns per unit of risk. Beijing SPC Environment is currently generating about -0.08 per unit of risk. If you would invest 1,644 in Sinocat Environmental Technology on August 29, 2024 and sell it today you would earn a total of 85.00 from holding Sinocat Environmental Technology or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Beijing SPC Environment
Performance |
| Timeline |
| Sinocat Environmental |
| Beijing SPC Environment |
Sinocat Environmental and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Beijing SPC
The main advantage of trading using opposite Sinocat Environmental and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Beijing SPC 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 Beijing SPC will offset losses from the drop in Beijing SPC's long position.| Sinocat Environmental vs. Loongson Technology Corp | Sinocat Environmental vs. Chongqing Road Bridge | Sinocat Environmental vs. Shenzhen Fortune Trend | Sinocat Environmental vs. Wuhan Xianglong Power |
| Beijing SPC vs. Central Plains Environment | Beijing SPC vs. Guangdong Liantai Environmental | Beijing SPC vs. GRINM Semiconductor Materials | Beijing SPC vs. Southchip Semiconductor 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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