Correlation Between Sinocat Environmental and Shandong Sino
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By analyzing existing cross correlation between Sinocat Environmental Technology and Shandong Sino Agri United, you can compare the effects of market volatilities on Sinocat Environmental and Shandong Sino 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 Shandong Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Shandong Sino.
Diversification Opportunities for Sinocat Environmental and Shandong Sino
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinocat and Shandong is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Shandong Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Shandong Sino go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Shandong Sino
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the Shandong Sino. But the stock apears to be less risky and, when comparing its historical volatility, Sinocat Environmental Technology is 1.57 times less risky than Shandong Sino. The stock trades about -0.2 of its potential returns per unit of risk. The Shandong Sino Agri United is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,448 in Shandong Sino Agri United on October 25, 2024 and sell it today you would earn a total of 62.00 from holding Shandong Sino Agri United or generate 4.28% 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. Shandong Sino Agri United
Performance |
| Timeline |
| Sinocat Environmental |
| Shandong Sino Agri |
Sinocat Environmental and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Shandong Sino
The main advantage of trading using opposite Sinocat Environmental and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Shandong Sino 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 Shandong Sino will offset losses from the drop in Shandong Sino's long position.| Sinocat Environmental vs. PetroChina Co Ltd | Sinocat Environmental vs. Gansu Jiu Steel | Sinocat Environmental vs. Ming Yang Smart | Sinocat Environmental vs. Aba Chemicals Corp |
| Shandong Sino vs. Lotus Health Group | Shandong Sino vs. Hangzhou Minsheng Healthcare | Shandong Sino vs. Goodwill E Health | Shandong Sino vs. Ningbo MedicalSystem Biotechnology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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