Correlation Between Sinocat Environmental and Cansino Biologics
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By analyzing existing cross correlation between Sinocat Environmental Technology and Cansino Biologics, you can compare the effects of market volatilities on Sinocat Environmental and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Cansino Biologics.
Diversification Opportunities for Sinocat Environmental and Cansino Biologics
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinocat and Cansino is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Cansino Biologics go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Cansino Biologics
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the Cansino Biologics. In addition to that, Sinocat Environmental is 1.23 times more volatile than Cansino Biologics. It trades about -0.2 of its total potential returns per unit of risk. Cansino Biologics is currently generating about -0.1 per unit of volatility. If you would invest 6,123 in Cansino Biologics on October 25, 2024 and sell it today you would lose (322.00) from holding Cansino Biologics or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Cansino Biologics
Performance |
| Timeline |
| Sinocat Environmental |
| Cansino Biologics |
Sinocat Environmental and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Cansino Biologics
The main advantage of trading using opposite Sinocat Environmental and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' 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 |
| Cansino Biologics vs. Porton Fine Chemicals | Cansino Biologics vs. Thinkingdom Media Group | Cansino Biologics vs. Beijing Enlight Media | Cansino Biologics vs. Quectel Wireless Solutions |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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