Correlation Between Cultural Investment and Sinocat Environmental
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By analyzing existing cross correlation between Cultural Investment Holdings and Sinocat Environmental Technology, you can compare the effects of market volatilities on Cultural Investment and Sinocat Environmental 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 Cultural Investment with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Sinocat Environmental.
Diversification Opportunities for Cultural Investment and Sinocat Environmental
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Sinocat is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and Cultural Investment 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 Cultural Investment Holdings are associated (or correlated) with Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of Cultural Investment i.e., Cultural Investment and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Cultural Investment and Sinocat Environmental
Assuming the 90 days trading horizon Cultural Investment is expected to generate 2.4 times less return on investment than Sinocat Environmental. But when comparing it to its historical volatility, Cultural Investment Holdings is 1.37 times less risky than Sinocat Environmental. It trades about 0.13 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,220 in Sinocat Environmental Technology on September 19, 2024 and sell it today you would earn a total of 902.00 from holding Sinocat Environmental Technology or generate 73.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cultural Investment Holdings vs. Sinocat Environmental Technolo
Performance |
Timeline |
Cultural Investment |
Sinocat Environmental |
Cultural Investment and Sinocat Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cultural Investment and Sinocat Environmental
The main advantage of trading using opposite Cultural Investment and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.Cultural Investment vs. TianJin 712 Communication | Cultural Investment vs. Lander Sports Development | Cultural Investment vs. Ningxia Younglight Chemicals | Cultural Investment vs. JiShi Media Co |
Sinocat Environmental vs. BeiGene | Sinocat Environmental vs. Kweichow Moutai Co | Sinocat Environmental vs. Beijing Roborock Technology | Sinocat Environmental vs. G bits Network 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 Stocks Directory module to find actively traded stocks across global markets.
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