Correlation Between Industrial and Chengdu Xingrong
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By analyzing existing cross correlation between Industrial and Commercial and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Industrial and Chengdu Xingrong 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 Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Chengdu Xingrong.
Diversification Opportunities for Industrial and Chengdu Xingrong
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Chengdu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv 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 Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Industrial i.e., Industrial and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Industrial and Chengdu Xingrong
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.71 times more return on investment than Chengdu Xingrong. However, Industrial and Commercial is 1.4 times less risky than Chengdu Xingrong. It trades about 0.28 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.12 per unit of risk. If you would invest 604.00 in Industrial and Commercial on September 14, 2024 and sell it today you would earn a total of 38.00 from holding Industrial and Commercial or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Industrial and Commercial |
| Chengdu Xingrong Inv |
Industrial and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Chengdu Xingrong
The main advantage of trading using opposite Industrial and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Industrial vs. Allmed Medical Products | Industrial vs. Blue Sail Medical | Industrial vs. Yingde Greatchem Chemicals | Industrial vs. Zhongzhu Medical Holdings |
| Chengdu Xingrong vs. Anhui Jianghuai Automobile | Chengdu Xingrong vs. Beijing Sanyuan Foods | Chengdu Xingrong vs. Qingdao Foods Co | Chengdu Xingrong vs. Quectel 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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