Correlation Between Sinocat Environmental and Shenzhen Silver
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By analyzing existing cross correlation between Sinocat Environmental Technology and Shenzhen Silver Basis, you can compare the effects of market volatilities on Sinocat Environmental and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Shenzhen Silver.
Diversification Opportunities for Sinocat Environmental and Shenzhen Silver
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinocat and Shenzhen is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Shenzhen Silver
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the Shenzhen Silver. In addition to that, Sinocat Environmental is 1.72 times more volatile than Shenzhen Silver Basis. It trades about -0.35 of its total potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.48 per unit of volatility. If you would invest 1,176 in Shenzhen Silver Basis on October 11, 2024 and sell it today you would lose (273.00) from holding Shenzhen Silver Basis or give up 23.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Sinocat Environmental |
| Shenzhen Silver Basis |
Sinocat Environmental and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Shenzhen Silver
The main advantage of trading using opposite Sinocat Environmental and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| Sinocat Environmental vs. Ming Yang Smart | Sinocat Environmental vs. 159681 | Sinocat Environmental vs. 159005 | Sinocat Environmental vs. Loctek Ergonomic Technology |
| Shenzhen Silver vs. Eastern Air Logistics | Shenzhen Silver vs. Sinocat Environmental Technology | Shenzhen Silver vs. Invengo Information Technology | Shenzhen Silver vs. Sharetronic Data 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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