Correlation Between Chinese Universe and Industrial
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By analyzing existing cross correlation between Chinese Universe Publishing and Industrial and Commercial, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Industrial.
Diversification Opportunities for Chinese Universe and Industrial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chinese and Industrial is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing 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 Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Industrial go up and down completely randomly.
Pair Corralation between Chinese Universe and Industrial
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.27 times less risky than Industrial. The stock trades about -0.14 of its potential returns per unit of risk. The Industrial and Commercial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 682.00 in Industrial and Commercial on November 27, 2024 and sell it today you would earn a total of 7.00 from holding Industrial and Commercial or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Industrial and Commercial
Performance |
| Timeline |
| Chinese Universe Pub |
| Industrial and Commercial |
Chinese Universe and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Industrial
The main advantage of trading using opposite Chinese Universe and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. CIMC Vehicles Co | Chinese Universe vs. TongFu Microelectronics Co | Chinese Universe vs. YiDong Electronics Technology | Chinese Universe vs. Beijing Yanjing Brewery |
| Industrial vs. Zhengzhou Coal Mining | Industrial vs. Tibet Huayu Mining | Industrial vs. Dhc Software Co | Industrial vs. Linewell Software 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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