Correlation Between Industrial and Huagong Tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Huagong Tech Co, you can compare the effects of market volatilities on Industrial and Huagong Tech 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 Huagong Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Huagong Tech.
Diversification Opportunities for Industrial and Huagong Tech
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Huagong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Huagong Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huagong Tech 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 Huagong Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huagong Tech has no effect on the direction of Industrial i.e., Industrial and Huagong Tech go up and down completely randomly.
Pair Corralation between Industrial and Huagong Tech
Assuming the 90 days trading horizon Industrial is expected to generate 1.08 times less return on investment than Huagong Tech. But when comparing it to its historical volatility, Industrial and Commercial is 1.77 times less risky than Huagong Tech. It trades about 0.47 of its potential returns per unit of risk. Huagong Tech Co is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,510 in Huagong Tech Co on September 27, 2024 and sell it today you would earn a total of 493.00 from holding Huagong Tech Co or generate 14.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Industrial and Commercial vs. Huagong Tech Co
Performance |
| Timeline |
| Industrial and Commercial |
| Huagong Tech |
Industrial and Huagong Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Huagong Tech
The main advantage of trading using opposite Industrial and Huagong Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Huagong Tech 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 Huagong Tech will offset losses from the drop in Huagong Tech's long position.| Industrial vs. Kweichow Moutai Co | Industrial vs. Agricultural Bank of | Industrial vs. China Mobile Limited | Industrial vs. China Construction Bank |
| Huagong Tech vs. Industrial and Commercial | Huagong Tech vs. China Construction Bank | Huagong Tech vs. Agricultural Bank of | Huagong Tech 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |