Correlation Between Bingshan Refrigeration and Industrial
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By analyzing existing cross correlation between Bingshan Refrigeration and and Industrial and Commercial, you can compare the effects of market volatilities on Bingshan Refrigeration 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 Bingshan Refrigeration with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bingshan Refrigeration and Industrial.
Diversification Opportunities for Bingshan Refrigeration and Industrial
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bingshan and Industrial is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bingshan Refrigeration and 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 Bingshan Refrigeration 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 Bingshan Refrigeration and 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 Bingshan Refrigeration i.e., Bingshan Refrigeration and Industrial go up and down completely randomly.
Pair Corralation between Bingshan Refrigeration and Industrial
Assuming the 90 days trading horizon Bingshan Refrigeration is expected to generate 1.13 times less return on investment than Industrial. In addition to that, Bingshan Refrigeration is 1.35 times more volatile than Industrial and Commercial. It trades about 0.07 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 |
Bingshan Refrigeration and vs. Industrial and Commercial
Performance |
| Timeline |
| Bingshan Refrigeration |
| Industrial and Commercial |
Bingshan Refrigeration and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bingshan Refrigeration and Industrial
The main advantage of trading using opposite Bingshan Refrigeration and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bingshan Refrigeration 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.| Bingshan Refrigeration vs. Industrial and Commercial | Bingshan Refrigeration vs. Kweichow Moutai Co | Bingshan Refrigeration vs. Agricultural Bank of | Bingshan Refrigeration vs. China Mobile Limited |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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