Correlation Between Shenzhen INVT and Industrial
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By analyzing existing cross correlation between Shenzhen INVT Electric and Industrial and Commercial, you can compare the effects of market volatilities on Shenzhen INVT and Industrial 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 Shenzhen INVT with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen INVT and Industrial.
Diversification Opportunities for Shenzhen INVT and Industrial
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Industrial is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen INVT Electric and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Shenzhen INVT 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 Shenzhen INVT Electric are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Shenzhen INVT i.e., Shenzhen INVT and Industrial go up and down completely randomly.
Pair Corralation between Shenzhen INVT and Industrial
Assuming the 90 days trading horizon Shenzhen INVT is expected to generate 5.23 times less return on investment than Industrial. In addition to that, Shenzhen INVT is 2.21 times more volatile than Industrial and Commercial. It trades about 0.01 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.1 per unit of volatility. If you would invest 479.00 in Industrial and Commercial on September 14, 2024 and sell it today you would earn a total of 163.00 from holding Industrial and Commercial or generate 34.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shenzhen INVT Electric vs. Industrial and Commercial
Performance |
| Timeline |
| Shenzhen INVT Electric |
| Industrial and Commercial |
Shenzhen INVT and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen INVT and Industrial
The main advantage of trading using opposite Shenzhen INVT and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen INVT position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Shenzhen INVT vs. Industrial and Commercial | Shenzhen INVT vs. Agricultural Bank of | Shenzhen INVT vs. China Construction Bank | Shenzhen INVT vs. Bank of China |
| Industrial vs. Allmed Medical Products | Industrial vs. Blue Sail Medical | Industrial vs. Yingde Greatchem Chemicals | Industrial vs. Zhongzhu Medical Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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