Correlation Between Industrial and Weichai Heavy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Weichai Heavy Machinery, you can compare the effects of market volatilities on Industrial and Weichai Heavy 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 Weichai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Weichai Heavy.
Diversification Opportunities for Industrial and Weichai Heavy
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Weichai is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Weichai Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weichai Heavy Machinery 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 Weichai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weichai Heavy Machinery has no effect on the direction of Industrial i.e., Industrial and Weichai Heavy go up and down completely randomly.
Pair Corralation between Industrial and Weichai Heavy
Assuming the 90 days trading horizon Industrial is expected to generate 8.18 times less return on investment than Weichai Heavy. But when comparing it to its historical volatility, Industrial and Commercial is 5.69 times less risky than Weichai Heavy. It trades about 0.09 of its potential returns per unit of risk. Weichai Heavy Machinery is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,066 in Weichai Heavy Machinery on September 1, 2024 and sell it today you would earn a total of 142.00 from holding Weichai Heavy Machinery or generate 13.32% 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. Weichai Heavy Machinery
Performance |
| Timeline |
| Industrial and Commercial |
| Weichai Heavy Machinery |
Industrial and Weichai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Weichai Heavy
The main advantage of trading using opposite Industrial and Weichai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Weichai Heavy 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 Weichai Heavy will offset losses from the drop in Weichai Heavy's long position.| Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Chengdu Spaceon Electronics | Industrial vs. Zhongtong Guomai Communication | Industrial vs. Railway Signal Communication |
| Weichai Heavy vs. Cultural Investment Holdings | Weichai Heavy vs. Gome Telecom Equipment | Weichai Heavy vs. Bus Online Co | Weichai Heavy vs. Holitech Technology 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |