Correlation Between Sinocat Environmental and Dow Jones
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By analyzing existing cross correlation between Sinocat Environmental Technology and Dow Jones Industrial, you can compare the effects of market volatilities on Sinocat Environmental and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Dow Jones.
Diversification Opportunities for Sinocat Environmental and Dow Jones
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinocat and Dow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Dow Jones go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Dow Jones
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 3.69 times more return on investment than Dow Jones. However, Sinocat Environmental is 3.69 times more volatile than Dow Jones Industrial. It trades about 0.34 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of risk. If you would invest 1,545 in Sinocat Environmental Technology on September 1, 2024 and sell it today you would earn a total of 440.00 from holding Sinocat Environmental Technology or generate 28.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Dow Jones Industrial
Performance |
| Timeline |
Sinocat Environmental and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sinocat Environmental Technology
Pair trading matchups for Sinocat Environmental
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sinocat Environmental and Dow Jones
The main advantage of trading using opposite Sinocat Environmental and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Sinocat Environmental vs. Invengo Information Technology | Sinocat Environmental vs. Ping An Insurance | Sinocat Environmental vs. CITIC Guoan Information | Sinocat Environmental vs. Unisplendour Corp |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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