Correlation Between Centre Testing and Industrial
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By analyzing existing cross correlation between Centre Testing Intl and Industrial and Commercial, you can compare the effects of market volatilities on Centre Testing 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 Centre Testing with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centre Testing and Industrial.
Diversification Opportunities for Centre Testing and Industrial
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centre and Industrial is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Centre Testing Intl 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 Centre Testing 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 Centre Testing Intl 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 Centre Testing i.e., Centre Testing and Industrial go up and down completely randomly.
Pair Corralation between Centre Testing and Industrial
Assuming the 90 days trading horizon Centre Testing Intl is expected to under-perform the Industrial. In addition to that, Centre Testing is 2.24 times more volatile than Industrial and Commercial. It trades about -0.1 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.07 per unit of volatility. If you would invest 613.00 in Industrial and Commercial on September 5, 2024 and sell it today you would earn a total of 8.00 from holding Industrial and Commercial or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centre Testing Intl vs. Industrial and Commercial
Performance |
| Timeline |
| Centre Testing Intl |
| Industrial and Commercial |
Centre Testing and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centre Testing and Industrial
The main advantage of trading using opposite Centre Testing and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centre Testing 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.| Centre Testing vs. Industrial and Commercial | Centre Testing vs. Agricultural Bank of | Centre Testing vs. China Construction Bank | Centre Testing vs. Bank of China |
| Industrial vs. Sichuan Hebang Biotechnology | Industrial vs. Bloomage Biotechnology Corp | Industrial vs. Liaoning Chengda Biotechnology | Industrial vs. BCEG Environmental Remediation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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