Correlation Between Sinocat Environmental and Shenzhen
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By analyzing existing cross correlation between Sinocat Environmental Technology and Shenzhen AV Display Co, you can compare the effects of market volatilities on Sinocat Environmental and Shenzhen 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Shenzhen.
Diversification Opportunities for Sinocat Environmental and Shenzhen
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinocat and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Shenzhen go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Shenzhen
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the Shenzhen. But the stock apears to be less risky and, when comparing its historical volatility, Sinocat Environmental Technology is 1.13 times less risky than Shenzhen. The stock trades about -0.01 of its potential returns per unit of risk. The Shenzhen AV Display Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,494 in Shenzhen AV Display Co on September 4, 2024 and sell it today you would earn a total of 21.00 from holding Shenzhen AV Display Co or generate 0.6% 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. Shenzhen AV Display Co
Performance |
Timeline |
Sinocat Environmental |
Shenzhen AV Display |
Sinocat Environmental and Shenzhen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinocat Environmental and Shenzhen
The main advantage of trading using opposite Sinocat Environmental and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Shenzhen 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 will offset losses from the drop in Shenzhen's 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 |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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