Correlation Between Sinocat Environmental and Zhejiang Orient
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By analyzing existing cross correlation between Sinocat Environmental Technology and Zhejiang Orient Gene, you can compare the effects of market volatilities on Sinocat Environmental and Zhejiang Orient 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 Zhejiang Orient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Zhejiang Orient.
Diversification Opportunities for Sinocat Environmental and Zhejiang Orient
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinocat and Zhejiang is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Zhejiang Orient Gene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Orient Gene 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 Zhejiang Orient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Orient Gene has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Zhejiang Orient go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Zhejiang Orient
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 1.23 times more return on investment than Zhejiang Orient. However, Sinocat Environmental is 1.23 times more volatile than Zhejiang Orient Gene. It trades about 0.0 of its potential returns per unit of risk. Zhejiang Orient Gene is currently generating about -0.01 per unit of risk. If you would invest 2,834 in Sinocat Environmental Technology on September 12, 2024 and sell it today you would lose (503.00) from holding Sinocat Environmental Technology or give up 17.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Zhejiang Orient Gene
Performance |
| Timeline |
| Sinocat Environmental |
| Zhejiang Orient Gene |
Sinocat Environmental and Zhejiang Orient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Zhejiang Orient
The main advantage of trading using opposite Sinocat Environmental and Zhejiang Orient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Zhejiang Orient 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 Zhejiang Orient will offset losses from the drop in Zhejiang Orient's long position.| Sinocat Environmental vs. Lutian Machinery Co | Sinocat Environmental vs. PetroChina Co Ltd | Sinocat Environmental vs. Bank of China | Sinocat Environmental vs. Gansu Jiu Steel |
| Zhejiang Orient vs. Beijing SPC Environment | Zhejiang Orient vs. Shenzhen MYS Environmental | Zhejiang Orient vs. Sinocat Environmental Technology | Zhejiang Orient vs. Jiangxi JDL Environmental |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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