Correlation Between Changshu Ruite and Industrial
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By analyzing existing cross correlation between Changshu Ruite Electric and Industrial and Commercial, you can compare the effects of market volatilities on Changshu Ruite 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 Changshu Ruite with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Ruite and Industrial.
Diversification Opportunities for Changshu Ruite and Industrial
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Changshu and Industrial is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Ruite 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 Changshu Ruite 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 Changshu Ruite 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 Changshu Ruite i.e., Changshu Ruite and Industrial go up and down completely randomly.
Pair Corralation between Changshu Ruite and Industrial
Assuming the 90 days trading horizon Changshu Ruite Electric is expected to generate 1.4 times more return on investment than Industrial. However, Changshu Ruite is 1.4 times more volatile than Industrial and Commercial. It trades about 0.26 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.13 per unit of risk. If you would invest 702.00 in Changshu Ruite Electric on December 4, 2024 and sell it today you would earn a total of 49.00 from holding Changshu Ruite Electric or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changshu Ruite Electric vs. Industrial and Commercial
Performance |
| Timeline |
| Changshu Ruite Electric |
| Industrial and Commercial |
Changshu Ruite and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Ruite and Industrial
The main advantage of trading using opposite Changshu Ruite and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Ruite 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.| Changshu Ruite vs. Nanjing Putian Telecommunications | Changshu Ruite vs. Quectel Wireless Solutions | Changshu Ruite vs. Anhui Jianghuai Automobile | Changshu Ruite vs. Runjian Communication Co |
| Industrial vs. Aluminum Corp of | Industrial vs. Rising Nonferrous Metals | Industrial vs. Yonghui Superstores Co | Industrial vs. Marssenger Kitchenware Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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