Correlation Between Industrial and Financial Street
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By analyzing existing cross correlation between Industrial and Commercial and Financial Street Holdings, you can compare the effects of market volatilities on Industrial and Financial Street 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 Industrial with a short position of Financial Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Financial Street.
Diversification Opportunities for Industrial and Financial Street
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrial and Financial is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Financial Street Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Street Holdings and Industrial 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 Industrial and Commercial are associated (or correlated) with Financial Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Street Holdings has no effect on the direction of Industrial i.e., Industrial and Financial Street go up and down completely randomly.
Pair Corralation between Industrial and Financial Street
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.45 times more return on investment than Financial Street. However, Industrial and Commercial is 2.2 times less risky than Financial Street. It trades about 0.1 of its potential returns per unit of risk. Financial Street Holdings is currently generating about -0.03 per unit of risk. If you would invest 403.00 in Industrial and Commercial on November 5, 2024 and sell it today you would earn a total of 279.00 from holding Industrial and Commercial or generate 69.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Financial Street Holdings
Performance |
| Timeline |
| Industrial and Commercial |
| Financial Street Holdings |
Industrial and Financial Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Financial Street
The main advantage of trading using opposite Industrial and Financial Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Financial Street 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 Financial Street will offset losses from the drop in Financial Street's long position.| Industrial vs. China World Trade | Industrial vs. Yili Chuanning Biotechnology | Industrial vs. Wuhan Hvsen Biotechnology | Industrial vs. Anhui Huilong Agricultural |
| Financial Street vs. Jilin OLED Material | Financial Street vs. Shenzhen Cotran New | Financial Street vs. Orinko Advanced Plastics | Financial Street vs. Queclink Wireless Solutions |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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