Correlation Between Industrial and Beijing New
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By analyzing existing cross correlation between Industrial and Commercial and Beijing New Building, you can compare the effects of market volatilities on Industrial and Beijing New 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 Beijing New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Beijing New.
Diversification Opportunities for Industrial and Beijing New
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Beijing is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building 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 Beijing New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of Industrial i.e., Industrial and Beijing New go up and down completely randomly.
Pair Corralation between Industrial and Beijing New
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.61 times more return on investment than Beijing New. However, Industrial and Commercial is 1.65 times less risky than Beijing New. It trades about 0.07 of its potential returns per unit of risk. Beijing New Building is currently generating about -0.02 per unit of risk. If you would invest 544.00 in Industrial and Commercial on September 1, 2024 and sell it today you would earn a total of 71.00 from holding Industrial and Commercial or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Industrial and Commercial vs. Beijing New Building
Performance |
| Timeline |
| Industrial and Commercial |
| Beijing New Building |
Industrial and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Beijing New
The main advantage of trading using opposite Industrial and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Beijing New 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 Beijing New will offset losses from the drop in Beijing New's long position.| Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Chengdu Spaceon Electronics | Industrial vs. Zhongtong Guomai Communication | Industrial vs. Railway Signal Communication |
| Beijing New vs. Industrial and Commercial | Beijing New vs. Agricultural Bank of | Beijing New vs. China Construction Bank | Beijing New 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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