Correlation Between Piotech and Sinocat Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Piotech Inc A and Sinocat Environmental Technology, you can compare the effects of market volatilities on Piotech 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 Piotech with a short position of Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Sinocat Environmental.
Diversification Opportunities for Piotech and Sinocat Environmental
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Piotech and Sinocat is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental and Piotech 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 Piotech Inc A 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 Piotech i.e., Piotech and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Piotech and Sinocat Environmental
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 1.17 times more return on investment than Sinocat Environmental. However, Piotech is 1.17 times more volatile than Sinocat Environmental Technology. It trades about -0.01 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.01 per unit of risk. If you would invest 27,478 in Piotech Inc A on September 25, 2024 and sell it today you would lose (10,477) from holding Piotech Inc A or give up 38.13% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Piotech Inc A vs. Sinocat Environmental Technolo
Performance |
Timeline |
Piotech Inc A |
Sinocat Environmental |
Piotech and Sinocat Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Piotech and Sinocat Environmental
The main advantage of trading using opposite Piotech and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech 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.Piotech vs. Ming Yang Smart | Piotech vs. 159681 | Piotech vs. 159005 | Piotech vs. Loctek Ergonomic Technology |
Sinocat Environmental vs. China Life Insurance | Sinocat Environmental vs. Cinda Securities Co | Sinocat Environmental vs. Piotech Inc A | Sinocat Environmental vs. Dongxing Sec Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |