Correlation Between Sinocat Environmental and Sany Heavy
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By analyzing existing cross correlation between Sinocat Environmental Technology and Sany Heavy Industry, you can compare the effects of market volatilities on Sinocat Environmental and Sany Heavy 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 Sany Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Sany Heavy.
Diversification Opportunities for Sinocat Environmental and Sany Heavy
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sinocat and Sany is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Sany Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sany Heavy Industry 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 Sany Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sany Heavy Industry has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Sany Heavy go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Sany Heavy
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate about the same return on investment as Sany Heavy Industry. However, Sinocat Environmental is 1.76 times more volatile than Sany Heavy Industry. It trades about 0.01 of its potential returns per unit of risk. Sany Heavy Industry is currently producing about 0.02 per unit of risk. If you would invest 1,604 in Sany Heavy Industry on September 14, 2024 and sell it today you would earn a total of 98.00 from holding Sany Heavy Industry or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Sany Heavy Industry
Performance |
| Timeline |
| Sinocat Environmental |
| Sany Heavy Industry |
Sinocat Environmental and Sany Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Sany Heavy
The main advantage of trading using opposite Sinocat Environmental and Sany Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Sany Heavy 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 Sany Heavy will offset losses from the drop in Sany Heavy's long position.| Sinocat Environmental vs. BeiGene | Sinocat Environmental vs. Kweichow Moutai Co | Sinocat Environmental vs. Beijing Roborock Technology | Sinocat Environmental vs. G bits Network Technology |
| Sany Heavy vs. Hubei Xingfa Chemicals | Sany Heavy vs. Dymatic Chemicals | Sany Heavy vs. Do Fluoride Chemicals Co | Sany Heavy vs. Xinxiang Chemical Fiber |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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