Correlation Between Sungrow Power and Industrial
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By analyzing existing cross correlation between Sungrow Power Supply and Industrial and Commercial, you can compare the effects of market volatilities on Sungrow Power 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 Sungrow Power with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungrow Power and Industrial.
Diversification Opportunities for Sungrow Power and Industrial
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sungrow and Industrial is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sungrow Power Supply 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 Sungrow Power 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 Sungrow Power Supply 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 Sungrow Power i.e., Sungrow Power and Industrial go up and down completely randomly.
Pair Corralation between Sungrow Power and Industrial
Assuming the 90 days trading horizon Sungrow Power is expected to generate 1.57 times less return on investment than Industrial. In addition to that, Sungrow Power is 2.61 times more volatile than Industrial and Commercial. It trades about 0.02 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.09 per unit of volatility. If you would invest 399.00 in Industrial and Commercial on September 14, 2024 and sell it today you would earn a total of 243.00 from holding Industrial and Commercial or generate 60.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungrow Power Supply vs. Industrial and Commercial
Performance |
| Timeline |
| Sungrow Power Supply |
| Industrial and Commercial |
Sungrow Power and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungrow Power and Industrial
The main advantage of trading using opposite Sungrow Power and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungrow Power 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.| Sungrow Power vs. Industrial and Commercial | Sungrow Power vs. Agricultural Bank of | Sungrow Power vs. China Construction Bank | Sungrow Power 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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