Correlation Between Sino Bioenergy and LiqTech International
Can any of the company-specific risk be diversified away by investing in both Sino Bioenergy and LiqTech International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sino Bioenergy and LiqTech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino Bioenergy Corp and LiqTech International, you can compare the effects of market volatilities on Sino Bioenergy and LiqTech International 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 Sino Bioenergy with a short position of LiqTech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Bioenergy and LiqTech International.
Diversification Opportunities for Sino Bioenergy and LiqTech International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sino and LiqTech is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sino Bioenergy Corp and LiqTech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiqTech International and Sino Bioenergy 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 Sino Bioenergy Corp are associated (or correlated) with LiqTech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiqTech International has no effect on the direction of Sino Bioenergy i.e., Sino Bioenergy and LiqTech International go up and down completely randomly.
Pair Corralation between Sino Bioenergy and LiqTech International
Given the investment horizon of 90 days Sino Bioenergy Corp is expected to generate 4.33 times more return on investment than LiqTech International. However, Sino Bioenergy is 4.33 times more volatile than LiqTech International. It trades about 0.13 of its potential returns per unit of risk. LiqTech International is currently generating about -0.11 per unit of risk. If you would invest 0.04 in Sino Bioenergy Corp on January 21, 2024 and sell it today you would earn a total of 0.04 from holding Sino Bioenergy Corp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Sino Bioenergy Corp vs. LiqTech International
Performance |
| Timeline |
| Sino Bioenergy Corp |
| LiqTech International |
Sino Bioenergy and LiqTech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Bioenergy and LiqTech International
The main advantage of trading using opposite Sino Bioenergy and LiqTech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Bioenergy position performs unexpectedly, LiqTech International 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 LiqTech International will offset losses from the drop in LiqTech International's long position.| Sino Bioenergy vs. Delta CleanTech | Sino Bioenergy vs. TOMI Environmental Solutions | Sino Bioenergy vs. Zurn Elkay Water | Sino Bioenergy vs. Purecycle Technologies Holdings |
| LiqTech International vs. China Natural Resources | LiqTech International vs. Seychelle Environmtl | LiqTech International vs. Vow ASA | LiqTech International vs. Eestech |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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