Correlation Between Industrial and Xian International
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By analyzing existing cross correlation between Industrial and Commercial and Xian International Medical, you can compare the effects of market volatilities on Industrial and Xian International 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 Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Xian International.
Diversification Opportunities for Industrial and Xian International
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Xian is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International 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 Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Industrial i.e., Industrial and Xian International go up and down completely randomly.
Pair Corralation between Industrial and Xian International
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.46 times more return on investment than Xian International. However, Industrial and Commercial is 2.18 times less risky than Xian International. It trades about 0.1 of its potential returns per unit of risk. Xian International Medical is currently generating about -0.04 per unit of risk. If you would invest 473.00 in Industrial and Commercial on September 4, 2024 and sell it today you would earn a total of 148.00 from holding Industrial and Commercial or generate 31.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Xian International Medical
Performance |
| Timeline |
| Industrial and Commercial |
| Xian International |
Industrial and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Xian International
The main advantage of trading using opposite Industrial and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Industrial vs. China Life Insurance | Industrial vs. Shenzhen MYS Environmental | Industrial vs. Anhui Fuhuang Steel | Industrial vs. China Sports Industry |
| Xian International vs. Industrial and Commercial | Xian International vs. Agricultural Bank of | Xian International vs. China Construction Bank | Xian International vs. Bank of China |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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