Correlation Between Sinocat Environmental and Tongxing Environmental
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By analyzing existing cross correlation between Sinocat Environmental Technology and Tongxing Environmental Protection, you can compare the effects of market volatilities on Sinocat Environmental and Tongxing 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 Sinocat Environmental with a short position of Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Tongxing Environmental.
Diversification Opportunities for Sinocat Environmental and Tongxing Environmental
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinocat and Tongxing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Sinocat Environmental i.e., Sinocat Environmental and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Tongxing Environmental
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 1.13 times more return on investment than Tongxing Environmental. However, Sinocat Environmental is 1.13 times more volatile than Tongxing Environmental Protection. It trades about 0.05 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about -0.09 per unit of risk. If you would invest 1,781 in Sinocat Environmental Technology on September 24, 2024 and sell it today you would earn a total of 50.00 from holding Sinocat Environmental Technology or generate 2.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Sinocat Environmental Technolo vs. Tongxing Environmental Protect
Performance |
Timeline |
Sinocat Environmental |
Tongxing Environmental |
Sinocat Environmental and Tongxing Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinocat Environmental and Tongxing Environmental
The main advantage of trading using opposite Sinocat Environmental and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat Environmental position performs unexpectedly, Tongxing 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.Sinocat Environmental vs. China Life Insurance | Sinocat Environmental vs. Cinda Securities Co | Sinocat Environmental vs. Piotech Inc A | Sinocat Environmental vs. Dongxing Sec Co |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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