Correlation Between Sinocat Environmental and ZheJiang Haers
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By analyzing existing cross correlation between Sinocat Environmental Technology and ZheJiang Haers Vacuum, you can compare the effects of market volatilities on Sinocat Environmental and ZheJiang Haers 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 ZheJiang Haers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and ZheJiang Haers.
Diversification Opportunities for Sinocat Environmental and ZheJiang Haers
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinocat and ZheJiang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and ZheJiang Haers Vacuum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZheJiang Haers Vacuum 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 ZheJiang Haers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZheJiang Haers Vacuum has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and ZheJiang Haers go up and down completely randomly.
Pair Corralation between Sinocat Environmental and ZheJiang Haers
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the ZheJiang Haers. In addition to that, Sinocat Environmental is 1.14 times more volatile than ZheJiang Haers Vacuum. It trades about -0.03 of its total potential returns per unit of risk. ZheJiang Haers Vacuum is currently generating about 0.04 per unit of volatility. If you would invest 694.00 in ZheJiang Haers Vacuum on September 4, 2024 and sell it today you would earn a total of 156.00 from holding ZheJiang Haers Vacuum or generate 22.48% 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. ZheJiang Haers Vacuum
Performance |
| Timeline |
| Sinocat Environmental |
| ZheJiang Haers Vacuum |
Sinocat Environmental and ZheJiang Haers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and ZheJiang Haers
The main advantage of trading using opposite Sinocat Environmental and ZheJiang Haers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, ZheJiang Haers 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 ZheJiang Haers will offset losses from the drop in ZheJiang Haers' long position.| Sinocat Environmental vs. Saurer Intelligent Technology | Sinocat Environmental vs. Dhc Software Co | Sinocat Environmental vs. Sinofibers Technology Co | Sinocat Environmental vs. Holitech Technology Co |
| ZheJiang Haers vs. Success Electronics | ZheJiang Haers vs. Fuzhou Rockchip Electronics | ZheJiang Haers vs. Zhongshan Public Utilities | ZheJiang Haers vs. Dongguan Tarry Electronics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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