Correlation Between Sinocat Environmental and Changchun BCHT
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By analyzing existing cross correlation between Sinocat Environmental Technology and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Sinocat Environmental and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Changchun BCHT.
Diversification Opportunities for Sinocat Environmental and Changchun BCHT
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sinocat and Changchun is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Changchun BCHT go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Changchun BCHT
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 2.0 times more return on investment than Changchun BCHT. However, Sinocat Environmental is 2.0 times more volatile than Changchun BCHT Biotechnology. It trades about -0.01 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.53 per unit of risk. If you would invest 1,641 in Sinocat Environmental Technology on November 6, 2024 and sell it today you would lose (14.00) from holding Sinocat Environmental Technology or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Sinocat Environmental |
| Changchun BCHT Biote |
Sinocat Environmental and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Changchun BCHT
The main advantage of trading using opposite Sinocat Environmental and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| Sinocat Environmental vs. Industrial and Commercial | Sinocat Environmental vs. Agricultural Bank of | Sinocat Environmental vs. China Construction Bank | Sinocat Environmental vs. Bank of China |
| Changchun BCHT vs. Soyea Technology Co | Changchun BCHT vs. Zhonghong Pulin Medical | Changchun BCHT vs. Tongyu Communication | Changchun BCHT vs. Allgens Medical Technology |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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