Correlation Between Sinocat Environmental and Minmetals Capital
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinocat Environmental Technology and Minmetals Capital Co, you can compare the effects of market volatilities on Sinocat Environmental and Minmetals Capital 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 Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Minmetals Capital.
Diversification Opportunities for Sinocat Environmental and Minmetals Capital
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinocat and Minmetals is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital 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 Minmetals Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minmetals Capital has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Minmetals Capital go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Minmetals Capital
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the Minmetals Capital. In addition to that, Sinocat Environmental is 1.25 times more volatile than Minmetals Capital Co. It trades about -0.04 of its total potential returns per unit of risk. Minmetals Capital Co is currently generating about 0.07 per unit of volatility. If you would invest 477.00 in Minmetals Capital Co on September 3, 2024 and sell it today you would earn a total of 242.00 from holding Minmetals Capital Co or generate 50.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Minmetals Capital Co
Performance |
| Timeline |
| Sinocat Environmental |
| Minmetals Capital |
Sinocat Environmental and Minmetals Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Minmetals Capital
The main advantage of trading using opposite Sinocat Environmental and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Minmetals Capital 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 Minmetals Capital will offset losses from the drop in Minmetals Capital's long position.| Sinocat Environmental vs. PetroChina Co Ltd | Sinocat Environmental vs. China Mobile Limited | Sinocat Environmental vs. Industrial and Commercial | Sinocat Environmental vs. China Life Insurance |
| Minmetals Capital vs. Beijing Jiaman Dress | Minmetals Capital vs. Tianjin Capital Environmental | Minmetals Capital vs. Sinocat Environmental Technology | Minmetals Capital vs. Beijing Mainstreets Investment |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |