Correlation Between Sino Bioenergy and Delta CleanTech
Can any of the company-specific risk be diversified away by investing in both Sino Bioenergy and Delta CleanTech 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 Delta CleanTech 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 Delta CleanTech, you can compare the effects of market volatilities on Sino Bioenergy and Delta CleanTech 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 Delta CleanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Bioenergy and Delta CleanTech.
Diversification Opportunities for Sino Bioenergy and Delta CleanTech
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sino and Delta is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sino Bioenergy Corp and Delta CleanTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta CleanTech 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 Delta CleanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta CleanTech has no effect on the direction of Sino Bioenergy i.e., Sino Bioenergy and Delta CleanTech go up and down completely randomly.
Pair Corralation between Sino Bioenergy and Delta CleanTech
If you would invest 1.71 in Delta CleanTech on February 2, 2024 and sell it today you would earn a total of 2.29 from holding Delta CleanTech or generate 133.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 0.0% |
Values | Daily Returns |
Sino Bioenergy Corp vs. Delta CleanTech
Performance |
Timeline |
Sino Bioenergy Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Delta CleanTech |
Sino Bioenergy and Delta CleanTech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sino Bioenergy and Delta CleanTech
The main advantage of trading using opposite Sino Bioenergy and Delta CleanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Bioenergy position performs unexpectedly, Delta CleanTech 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 Delta CleanTech will offset losses from the drop in Delta CleanTech's long position.Sino Bioenergy vs. Eestech | Sino Bioenergy vs. Vow ASA | Sino Bioenergy vs. Seychelle Environmtl | Sino Bioenergy vs. Energy and Water |
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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 Stocks Directory module to find actively traded stocks across global markets.
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